This article says remote work, rather than AI, explains much of the recent slow hiring of new college graduates. It kind of makes sense to me – older managers came up in an environment where building relationships face-to-face was the foundation of productive teams. In my earlier career years, the unspoken expectation was that we spent more than 8 hours in the office, and a lot of that was “wasted” in a straight-up productivity sense, but not wasted in terms of building those relationships. There was also a fair amount of work-based socializing over lunch and after those 8+ hours in the actual office, and it was not unusual for significant quantities of alcohol to be involved. Mad Men may have been an caricature exaggerated for dramatic and comedic effect, but it gives some idea of what the work culture has lost. And some elements we have lost should not be missed. The work culture has just changed – even if younger workers are present face to face in the office, they are on screens and wearing headphones a lot of the time. If they are paid by the hour, they are not taking lunch breaks and they will stand up and walk away without saying goodbye at 5 pm. Without these younger workers around, I think older workers are also forgetting how to train and mentor younger workers effectively. I’m not saying all of this is bad – it represents a shift of priorities in our society. Maybe young people are using those hours outside of work to form relationships and find meaning that my generation tried to find at work. Their livers and odds of dying or killing someone else in a drunk driving accident are almost certainly better off. We may need to adapt to this rather than find “solutions”. Maybe AI can be the glue that holds together work culture in place of yesterday’s water cooler conversations and happy hours. Anyway, that’s my preamble – here is the article about remote work…
The Broken Ladder: AI, Remote Work, and Early-Career Hiring
Is generative AI replacing junior workers? A growing literature answers yes, citing large declines in early-career hiring concentrated in GenAI-exposed occupations. We argue that this verdict is premature because GenAI exposure is strongly correlated with another post-pandemic shock, working from home (WFH). Using two data sources spanning 243 million new hires and 407 million online job postings, collected across the US, UK, Canada, and Australia during 2017-2025, we estimate difference-in-difference designs at the occupation, region, and firm level. When estimated separately, a two-standard-deviation increase in GenAI and WFH exposure each predicts, by 2025, a fall of around 5pp in the junior-share of new hires and around 3pp in the share of job ads requiring limited experience. Estimated jointly, the WFH effect remains, while the GenAI coefficient attenuates sharply and is often statistically indistinguishable from zero. Alternative exposure measures, residualization designs, flexible non-parametric co-treatment controls, and replacing exposure-measures with actual WFH adoption as the treatment all support our finding that WFH is a robust predictor of the decline in early-career hiring.