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Giuseppe Musillo

@gmusillo.bsky.social

28 followers 23 following 11 posts

Ph.D. Candidate in Economics at Tilburg University giuseppemusillo.github.io

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Reposted by Giuseppe Musillo

Applied Young Economists' Webinar @ayew.bsky.social · 10/03/2026

#econsky TOMORROW (11 Mar): Labor Economics Workshop! Join us at 10am GMT / 9pm AEDT and listen to @jeyuq.bsky.social (@pittecon.bsky.social), @gmusillo.bsky.social (Tilburg University) & Mathew Brown (@uconn.bsky.social) Zoom link: www.monash.edu/business/imp...

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

🚨 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.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

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.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

In our second experiment, some recruiters explicitly knew when letters were ChatGPT-assisted. We find that recruiters reward high-quality applicants who did not use AI, rating their letters higher and increasing their interview chances.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

Detailed textual analysis of ChatGPT interactions revealed applicants repeatedly asked AI for help specifically on the personalized sections. Despite this effort, improvements remained minimal, showing a mismatch between demand and AI’s capabilities.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

Why? Recruiters valued personalized sections— such as motivation—more than generic sections improved by ChatGPT. LLMs did not effectively enhance these critical sections.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

Results: ChatGPT improved overall cover letter quality by 0.2 standard deviations. However, this improvement did not lead to increased interview invitations—meaning better letters didn’t equal better hiring outcomes.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

We ran two field experiments. In the first, job-seekers wrote cover letters either with or without ChatGPT assistance. Recruiters from four global companies evaluated these letters without knowing which used LLMs.

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

Cover letters, essential for signaling soft skills and motivation, can now be easily written using LLMs. Our research question: Do LLM-generated cover letters help job-seekers, and do they distort hiring decisions?

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

The labor market is transforming rapidly due to new technologies. LLMs are very influential, with 23% of U.S. workers already using ChatGPT at their jobs. Current literature has examined the impact of technology on work but hasn’t yet deeply explored how LLMs affect job matching

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

Excited to share our new working paper (with Kian Abbas Nejad, Till Wicker, and Niccolò Zaccaria) on how LLMs like ChatGPT influence labor market signals—especially cover letters—and hiring outcomes! bit.ly/4i5q5c0

bit.ly

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Giuseppe Musillo @gmusillo.bsky.social · 11/04/2025

🚨 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 🧵:

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