GPT and the Economics of Cognitively Costly Writing Tasks §
Highlights §
- Dr. Gary Becker’s theory of time allocation, which suggests that individuals optimize their utility by balancing market work, household production, and leisure. In the same vein, Goldin and Katz’s theory of skill-biased technological change posits that advances in technology tend to benefit workers with higher skills or education, widening the gap between them and less-skilled workers. (View Highlight)
- Many overlook the role of technology in reducing production costs and altering relative input prices, which, in turn, impacts time allocation. (View Highlight)
- Drawing from Becker’s time allocation theory and Goldin and Katz’s perspective, the rise of GPT could usher in a new era of efficiency for those adept at using it. As time costs for cognitively demanding tasks decline, we may witness skilled GPT users producing more content than ever before, harnessing the power of AI to enhance their work. (View Highlight)
- Goldin and Katz’s theory of skill-biased technological change emphasizes that the benefits of technological advancements are unevenly distributed, with more educated and skilled workers gaining disproportionately. In the context of GPT and cognitively costly writing tasks, those who are more adept at leveraging GPT’s capabilities to enhance their productivity and output are likely to benefit the most from this technological innovation. (View Highlight)