Reorganization effect can reverse technology effect on AI-era wages, paper shows

soumitrashukla9 · x · 2026-11-07

RT of @andrewjkoh's paper thread: wage changes decompose into a technology effect (how AI improvement shifts firms' willingness to pay for worker types, holding organizations fixed) and a reorganization effect (changing firm composition changes what firms value). Key result: the reorg effect can reverse the sign of the tech effect on wages. Figures show coordinator vs productive worker divergence and non-monotonic wage peaks as AI coordination improves.

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