🚨 Do LLM-generated cover letters help job-seekers, and do they distort hiring decisions?
Answer: They improve overall cover letter quality but do NOT increase chances for interviews. Recruiters prefer genuine motivation and experience—areas where ChatGPT struggles.
A 🧵:
🚨 Conclusion: As LLMs become more prevalent, understanding their nuanced effects on labor market signaling is crucial. Future hiring processes must account for these complexities to remain fair and efficient.
Using experimental data, we built a labor market model to quantify impacts. We find that LLM-driven distortions can reduce overall hiring efficiency by up to 6%, as recruiters begin discounting signals across the board due to suspicion of AI-generated content.
Excited to fly to Japan for an amazing conference with great people @HitoshiShigeoka@G0urens@g_musillo. Haven't been to Tokyo in 10 years, time for a reunion!
The Inaugural Essex PhD Conference in Applied Economics will take place next week at @Uni_of_Essex. Sessions on crime, labour, development, public finance, education. Keynotes by @orianabandiera and M. Francesconi. Conference dinner at @WivenhoeHouse. Full programme below.