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on Labor Markets - Supply, Demand, and Wages |
| By: | Jaccoud, Florencia (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper examines the linkages between occupational exposure to recent automation technologies and inequality across 19 European countries. Using data from the European Union Structure of Earnings Survey (EU-SES), a fixed-effects model is employed to assess the association between occupational exposure to artificial intelligence (AI) and to industrial robots - two distinct forms of automation -and within occupation wage inequality. The analysis reveals that occupations with higher exposure to robots tend to have lower wage inequality, particularly among workers in the lower half of the wage distribution. In contrast, occupations more exposed to AI exhibit greater wage dispersion, especially at the top of the wage distribution. We argue that this disparity arises from differences in how each technology complements individual worker abilities: robot-related tasks often complement routine physical activities, while AI-related tasks tend to amplify the productivity of high-skilled, cognitively intensive work. |
| JEL: | J31 J24 O15 O33 |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025013 |
| By: | Kuai, Wenjing (Hunan University); Elliott, Robert J. R. (University of Birmingham); Okubo, Toshihiro (Keio University); Ozgen, Ceren (University of Birmingham) |
| Abstract: | To address climate change concerns, Japan is accelerating the greening of its economy. In this paper we analyze the characteristics of the workers that are contributing to the green transition and estimate the so-called green wage premium. Using propriety data from a recent worker-level survey for Japan, we provide a continuous measure of the degree to which a job can be considered green and document how green jobs are different from non-green jobs by sector, occupation and different demographics. Our structural model estimates of a green wage premium show that the hourly wage of green workers is 7.3% higher on average than non-green work- ers. A 10% increase in the green intensity of a job is shown to increase average hourly wages by 0.8%. Decomposition results suggest that the explainable part of the wage premium is largely due to task differences, gender disparities (in lower percentiles), and occupation. The unexplained part of the green wage premium are found mainly in high-paying green jobs where certain characteristics appear to be better rewarded, possibly driven by supply and demand imbalances. |
| Keywords: | Japan, wage gap, employment, green jobs, green transition, climate change |
| JEL: | Q50 Q52 J24 J31 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17878 |
| By: | Alexeev, Michael (Indiana University); Chernina, Yevgenia (New Uzbekistan University); Gimpelson, Vladimir (University of Wisconsin-Madison); Zinchenko, Darya (Higher School of Economics (HSE)) |
| Abstract: | We compare wage profiles for STEM-educated and non-STEM-educated individuals over their lifetimes. Using repeated cross-sectional data from Russia, we examine how the dynamics of these types of human capital are affected by technological developments, applying the Age-Period-Cohort decomposition to workers’ life cycle wage growth. Additionally, we account for heterogeneity in the impact of institutional quality on lifetime wage profiles. We show that STEM education is associated with flatter wage-experience profiles than non-STEM education, with the most pronounced differences observed among females. The cohort effect, apparently specific to the former Soviet-type economies, reveals itself in devaluing some types of older education, putting non-STEM cohorts educated during the Soviet period at a disadvantage relative to those with STEM education. Importantly, in the Russian case, the age/experience effects act in the direction opposite to the cohort effects, rendering the cross-sectional analysis somewhat misleading. Finally, wage-experience profiles for males with non-STEM education are steeper in regions with weak institutions than in regions with stronger institutions. |
| Keywords: | age-period-cohort decomposition, life-cycle wage growth, wage, human capital, STEM, Russia |
| JEL: | E24 J24 J31 O33 O43 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17875 |
| By: | García-Suaza, Andrés (Universidad del Rosario); Sarango-Iturralde, Alexander (Université Paris 1 Panthéon-Sorbonne); Caiza-Guamán, Pamela (Universidad del Rosario); Gil Díaz, Mateo (Universidad del Rosario); Acosta Castillo, Dana (Universidad del Rosario) |
| Abstract: | The rapid advancements in the domain of artificial intelligence (AI) have exerted a considerable influence on the labor market, thereby engendering alterations in the demand for specific skills and the structure of employment. This study aims to evaluate the extent of exposure to AI within the Colombian labor market and its relation with workforce characteristics and available job openings. To this end, we built a specific AI exposure index or Colombia based on skill demand in job posts. Our findings indicate that 33.8% of workers are highly exposed to AI, with variations observed depending on the measurement method employed. Furthermore, it is revealed a positive and significant correlation between AI exposure and wages, i.e., highly exposed to AI earn a wage premium of 21.8%. On the demand side, only 2.5% of job openings explicitly mention AI-related skills. These findings imply that international indices may underestimate the wage premium associated with AI exposure in Colombia and underscore the potential unequal effects on wages distribution among different demographic groups. |
| Keywords: | Artificial intelligence; Labor market; Job posts; Occupations; Skills; Colombia |
| JEL: | E24 J23 J24 O33 |
| Date: | 2025–04–24 |
| URL: | https://d.repec.org/n?u=RePEc:col:000092:021368 |
| By: | Clemens, Marco (Institute for Labor Law and Industrial Relations in the European Union (IAAEU) and Trier University); Sauermann, Jan (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | Performance pay has been shown to have important implications for worker and firm productivity.Although workers’ skills may directly matter for the cost of effort to reach performance goals, surprisingly little is know about the heterogeneity in the effects of incentive pay across workers. In this study, we apply a dynamic difference-in-differences estimator to the introduction of a generous bonus pay program to study how salient performance thresholds affect incentivized and non-incentivized performance outcomes for low- and high-skilled workers. While we do find that individual incentive pay did not affect workers’ performance on average, we show that this result conceals an underlying heterogeneity in the response to individual performance pay: individual performance pay has a significant effect on the performance of high-skilled workers but not for low-skilled workers. The findings can be rationalized with the idea that the costs of effort differ by workers’ skill level. We also explore whether agents alter their overtime hours and find a negative effect, possibly avoiding negative consequences of longer working hours. |
| Keywords: | performance pay; incentives; productivity; skills; panel data |
| JEL: | C23 J33 M52 |
| Date: | 2025–05–19 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2025_006 |
| By: | Kihwan Bae; Morris M. Kleiner; Conor Norris; Edward J. Timmons |
| Abstract: | There is a consensus that there is an earnings premium for licensed workers relative to unlicensed workers. However, little is known about how occupational licensing affects earnings inequality. In this paper, we study dynamic, heterogeneous earnings effects of occupational licensing and draw implications for earnings inequality in the United States. First, we find that the earnings gap between workers in licensed occupations and those in unlicensed occupations with similar characteristics (“licensing premium”) increased slightly during the 1983–2019 period. Second, we find that the licensing premium for workers in high paying occupations significantly increased, which is not the case for workers in lower paying occupations. The finding is consistent with growing demands for skills over the past decades, given the more rigorous licensing requirements for high-skilled occupations. As a result, earnings inequality among workers in licensed occupations increased. Third, we document that the licensing premium for female workers and workers without a college education declined relative to male workers and college graduates. Taken together, our findings suggest that occupational licensing is associated with widening earnings inequality in the United States during the 1983–2019 period. |
| JEL: | J31 J44 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33732 |
| By: | Annadurai, Gopinath (Indian Institute of Management Bangalore); Sahoo, Soham (Loughborough University) |
| Abstract: | We evaluate the First-Generation Graduate Scholarship scheme implemented in the Indian state of Tamil Nadu, which waives tuition fees for first-generation college students in technical education. Using household survey data in difference-in-differences (DiD) and synthetic DiD frameworks, we find substantial improvements in enrollment, stream choice, and graduation in technical courses, with downstream effects on regular employment, occupational choices, and household welfare. Male students gained more than female students. The scheme also increased reliance on education loans to cover residual costs. Our findings highlight how targeting intergenerational disadvantages through education policy can influence educational choices and produce positive labour market returns. |
| Keywords: | first-generation graduates, technical courses, tuition fee waiver, higher education, stream choice, labour market outcomes |
| JEL: | I23 I24 I28 J24 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17879 |
| By: | Galindo da Fonseca, JoaÞo; Santarrosa, Rogerio |
| Abstract: | We test whether firms react to changes in the wages and size of their competitors. We use a unique institutional feature of public procurement auctions in Brazil: the moment in which the auction ends is random. For close auctions, winner and runner-up are as good as randomly assigned. We first show that firm-specific demand shocks lead to increases in the size and wages of the firm receiving the shock. Then, we document that these firm-specific demand shocks lead to increased wages of other (competing) firms in the same local labor market. We do not find negative effects on competitors' firm size. The effects are driven by competing firms responding to demand shocks from firms with high labor market share. |
| JEL: | J01 J23 J30 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14084 |
| By: | Claridge, Jordan; Delabastita, Vincent; Gibbs, Spike |
| Abstract: | Much of our understanding of the dynamics of historical economies has been shaped by insights drawn from long-run wage series. Behind much scholarship concerning pre-industrial wages lies the quest for a representative ‘average’ wage trend. Indeed, much methodological discussion surrounds what characterizes an ‘average’ labourer and how best to capture their wages. This paper offers an alternative perspective by undertaking a comprehensive assessment of the diverse forms and levels of remuneration, including both pay rates and methods of payment. We find groups of workers whose working and earning was seemingly unaffected by the societal transmutations which followed the Black Death. At the same time, we find evidence of the ‘commercialization’ of labour markets: a process in which cash wages on lords’ demesne farms were increasingly shaped by market forces, and a more professionalized labour force was supplemented by a variety of higher-paid peripheral jobs. This paper highlights the need for a holistic perspective to fully appreciate the dynamics and statics of pre-industrial labour markets. |
| Keywords: | wages; labour markets; medieval England; inequality |
| JEL: | J33 J42 N33 N53 |
| Date: | 2025–04–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128024 |
| By: | Garg, Teevrat (University of California, San Diego); Jagnani, Maulik (Tufts University); Lyons, Liz (University of California, San Diego) |
| Abstract: | Heat's impact on economic growth and aggregate productivity is well-established, but while individual impairments are well-understood as mechanisms, the role of interpersonal dynamics remain unexplored despite the growing prevalence of team-based occupations. In our experiment, programmers were randomly assigned to work individually or in pairs under warm (29°C) or control (24°C) conditions. We found that heat had no effect on individual performance but impaired team performance—not through decreased effort but likely through impaired collaboration. This negative impact was strongest in heterogeneous teams, suggesting heat exacerbates coordination challenges, confirmed by poorer partner evaluations in warm conditions. |
| Keywords: | team production, heat stress, labor productivity |
| JEL: | J24 Q54 Q56 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17870 |
| By: | Eren Gürer; Alfons Weichenrieder |
| Abstract: | This study examines optimal government redistribution in a Mirrleesian framework, accounting for a negative effect of longer working hours on productivity. A government ignoring this effect perceives labor supply as insufficient and sets lower marginal income taxes to encourage work. In contrast, a government recognizing the endogenous relationship between productivity and labor supply redistributes more. However, the resulting marginal taxes are still lower than those predicted by standard models where productivity is independent of working hours. |
| Keywords: | working hours, productivity, optimal redistribution, self-confirming policy equilibrium. |
| JEL: | H21 H31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11866 |
| By: | Julien Champagne; Antoine Poulin-Moore; Mallory Long |
| Abstract: | We document recent changes in Canadian immigration, marked by an increasing prevalence of temporary residency. Using microdata from Statistics Canada's Labour Force Survey, we show that temporary workers' characteristics and nominal wages have diverged from those of Canadian-born workers. Between 2015 and 2024, temporary workers have become younger, less experienced and more likely to migrate from lower-income countries. As well, the shares of temporary workers in skilled occupations have declined moderately. Throughout this period, the average nominal wage gap between temporary and Canadian-born workers has more than doubled, widening from -9.5% to -22.6%. Further, we estimate Mincer regressions to assess how these evolving characteristics have contributed to the growing wage gap. Our findings show that this increase can be explained by observable characteristics. Our results suggest that aggregate nominal wages would have been, on average, 0.7% higher in 2023–24 had the characteristics of temporary workers remained unchanged over the past decade. |
| Keywords: | Labour markets; Productivity |
| JEL: | J20 J24 J61 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:25-08 |
| By: | Xue, Melanie; Zhang, Boxiao |
| Abstract: | We study the short- and long-term effects of affirmative action policies in the context of China. During imperial China, official positions were awarded to the most academically talented individuals through a multi-stage examination process administered by the central government. In 1712, a reform was implemented to address disparities in exam performance, aiming to equalize acceptance rates across provinces and increase representation from underrepresented regions. Using a unique dataset, we analyze career outcomes and find that more candidates from underrepresented provinces secured positions without compromising their performance after the reform. However, sub-provincial units showed different trends. Although the reform ended in 1905, the gap between underrepresented provinces and others widened again, but some effects of the reform remained. Moreover, the intervention had spillover effects, extending its impact to secondary education. |
| Keywords: | affirmative action; education; inequality; China |
| JEL: | H75 I28 J71 N40 |
| Date: | 2025–04–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128023 |
| By: | David Marguerit |
| Abstract: | Artificial intelligence (AI) is reshaping the labor market by changing the task content of occupations. This study investigates the impact of AI development on the emergence of new work, employment, and wages in the United States from 2015 to 2022. I develop innovative methods to measure occupational and industry exposure to AI technologies that substitute labor (automation AI ) or enhance workers' output (augmentation AI), and to identify new work (i.e., new job titles). To address endogeneity, I use instrumental variable estimators, leveraging AI development in countries with limited economic ties to the United States. The findings indicate that automation AI negatively impacts new work, employment, and wages in low-skilled occupations, while augmentation AI fosters the emergence of new work and raises wages for high-skilled occupations. These results suggest that AI may contribute to rising wage inequality. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.19159 |
| By: | Tom Coupé (University of Canterbury); Weilun Wu |
| Abstract: | This paper uses meta-analysis to summarize the literature that analyses the impact of generative AI on productivity. While we find substantial heterogeneity across studies, our preferred estimate suggests that on average, across a wide range of tasks, sectors, study methods and productivity measures, the use of GenAI tools increases productivity by 17 %. We further find some evidence that experimental studies show a higher association between GenAI use and productivity than quasi-experimental studies, and weak evidence that the size of the impact of GenAI tools is bigger for quantitative than for qualitative measures of productivity. |
| Keywords: | Generative Artificial Intelligence, Productivity, Meta-Analysis |
| JEL: | J24 O3 |
| Date: | 2025–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:cbt:econwp:25/09 |
| By: | Masahiro Yoshida (Department of Political Science and Economics, Waseda University, Tokyo) |
| Abstract: | Male labor force participation rates (LFPR) in developed economies have been declining since the 1970s. This paper argues that modern climate change has fueled dropouts of adult males by eroding the traditional advantage of working outdoors. Using exposure to climate change across US commuting zones constructed from granular daily weather records for nearly half a century, I find that extreme temperature days hurt the LFPR of prime-age males. In the new century, climate change accounts for approximately 10-15 percent of the nationwide decline in LFPR. I find that outdoor jobs—prevalent across sectors and prominent in disadvantaged regions—are likely hotbeds of dropout. Disability accounts for a substantial proportion of climate-induced dropouts, but the majority of these are likely due to preference; the decline in LFPR has been catalyzed by the spread of housing amenities (e.g., air conditioning and cable TV) and access to affluent family backgrounds. Overall, the results suggest that climate change exacerbates socioeconomic inequality. |
| Keywords: | Climate change, Male labor force participation, Outdoor jobs |
| JEL: | J21 J22 Q54 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:wap:wpaper:2508 |
| By: | Sugat Chaturvedi; Rochana Chaturvedi |
| Abstract: | Generative artificial intelligence (AI), particularly large language models (LLMs), is being rapidly deployed in recruitment and for candidate shortlisting. We audit several mid-sized open-source LLMs for gender bias using a dataset of 332, 044 real-world online job postings. For each posting, we prompt the model to recommend whether an equally qualified male or female candidate should receive an interview callback. We find that most models tend to favor men, especially for higher-wage roles. Mapping job descriptions to the Standard Occupational Classification system, we find lower callback rates for women in male-dominated occupations and higher rates in female-associated ones, indicating occupational segregation. A comprehensive analysis of linguistic features in job ads reveals strong alignment of model recommendations with traditional gender stereotypes. To examine the role of recruiter identity, we steer model behavior by infusing Big Five personality traits and simulating the perspectives of historical figures. We find that less agreeable personas reduce stereotyping, consistent with an agreeableness bias in LLMs. Our findings highlight how AI-driven hiring may perpetuate biases in the labor market and have implications for fairness and diversity within firms. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.21400 |
| By: | Ku, Hyejin (University College London); Mu, Tianrui (University College London) |
| Abstract: | This paper examines how China’s growing research capabilities impact global research universities across scientific fields. Using bibliometric data from 1980 to 2020, we assess the effects of the “China shock” on high-impact publications, novel concepts, and citation patterns. Our analysis reveals a positive net effect in Chemistry and Engineering & Materials Science (EMS), but a negative effect in Clinical & Life Sciences (CLS). In other fields, the effects are mostly positive but imprecise. We highlight the coexistence of competition and spillover effects, with their relative strength shaped by field characteristics, such as expansion potential and the quality of China’s research. |
| Keywords: | ideas, knowledge production, China shock in science, competition, spillovers |
| JEL: | J24 I23 O31 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17866 |
| By: | David M. Cutler; Ellen Meara; Susan Stewart |
| Abstract: | The growth of longevity in the U.S. and other countries has increased interest in raising the age of eligibility for public retirement benefits. The consequences of this policy depend on the health of the older adult population overall and by socioeconomic group. In this paper, we estimate how multiple dimensions of non-fatal health in older adults evolve over time and across cohorts – physical functioning, mental health, pain, and cognition. Our sample is individuals in the Health and Retirement Study who are aged 51 to 54 at baseline and are followed for up to two decades. We find that limitations in most domains have increased for younger cohorts, especially pain and cognitive impairment. People are more impaired in their 50s, where such impairment used to occur in one’s 60s. However, this appears to be a speeding up of impairment more than a long-term increase. Among people in their late 60s, health for later cohorts is similar to health for earlier cohorts. To evaluate the implications of these trends, we simulate the work capacity of adults just before reaching age 65 based on the health status of people at this age and the relationship between health and the labor force outcomes of younger people. Overall health among those age 62 to 64 remains high, despite impairment striking at younger ages. However, among people without high school degrees, less than half are predicted to have the capacity to work full time by age 62 to 64, and over a quarter are predicted to be receiving SSDI. |
| JEL: | I1 J01 J20 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33733 |
| By: | Gareth Markel (George Mason University); Jonathan Beauchamp (George Mason University); Rafael Ahlskog (Uppsala University); Joakim Coleman Ebeltoft (University of Oslo); René Mõttus (Department of Psychology, University of Edinburgh); Sven Oskarsson (Department of Government); Uku Vainik (University of Tartu); Eivind Ystrom (University of Oslo) |
| Abstract: | A consequence of Mendel’s First Law is that siblings’ genetic relatedness varies randomly (with a mean of 50% and a standard deviation of ∼4%). We use molecular genetic data to compute the genetic relatedness of ∼80, 000 sib pairs. We then compare the pairs’ genetic relatedness to their similarity on 15 outcomes in the cognitive and educational, labor market, risk taking, health, and anthropometric domains, to estimate the relative importance of genetic (i.e., heritability) and family environmental influences on each outcome. We find evidence of sizeable genetic influences on risk tolerance, subjective wellbeing, cognitive performance, height, and BMI, and robust evidence of family environmental influences on educational attainment and labor market outcomes. |
| Keywords: | heritability, family environment, molecular genetics |
| JEL: | A12 I12 J24 J30 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hka:wpaper:2025-004 |
| By: | Joubert, Clement (World Bank); Kanth, Priyanka (World Bank) |
| Abstract: | Low- and middle-income countries are experiencing fast population aging and reductions in extreme poverty, increasing theoretical incentives to save for old age, but empirical evidence on household wealth accumulation over the life cycle is lacking. Using age-cohort-time decompositions on 18 years of micro-data from Pakistan, we show that the average household accumulates wealth equivalent to 5 years’ worth of consumption between the ages of 25 and 65. Furthermore, this is mostly in the form of illiquid residential housing and land in rural areas. Examination of housing acquisitions, renovations, and dwelling characteristics over the life cycle reveals that wealth accumulation in 2001-2018 resulted partly from active investment in housing and partly from capital gains. To the extent that keeping all wealth in the form of housing may be sub-optimal, this constrained ability to save for the long term could motivate the extension of contributory pension instruments to informal sector workers, the majority of the workforce in this setting. |
| Keywords: | social protection, savings, informality, aging |
| JEL: | D14 D15 J11 J26 J46 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17876 |
| By: | Ribeiro, Marcos; Prettner, Klaus |
| Abstract: | How do new technologies affect economic growth and the skill premium? To answer this question, we analyze the impact of industrial robots and artificial intelligence (AI) on the wage differential between low-skill and high-skill workers across 52 countries using counterfactual simulations. In so doing, we extend the nested CES production function framework of Bloom et al. (2025) to account for cross-country income heterogeneity. Confirming prior findings, we show that the use of industrial robots tends to increase wage inequality, while the use of AI tends to reduce it. Our contribution lies in documenting substantial heterogeneity across income groups: the inequality-increasing effect of robots and the inequality-reducing effects of AI are particularly strong in high-income countries, while they are less pronounced among middle- and lower-middle income countries. In addition, we show that both technologies boost economic growth. In terms of policy recommendations, our findings suggest that investments in education and skill-upgrading can simultaneously raise average incomes and mitigate the negative effects of automation on wage inequality. |
| Keywords: | Automation Industrial Robots AI Skill premium |
| JEL: | J31 O33 |
| Date: | 2025–04–28 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124633 |
| By: | Arthur Jacobs (Ghent University) |
| Abstract: | I evaluate the link between automation and the rise in top income concentration when inequality matters for macro. The novel mechanism is that automation redistributes income towards high-wealth households who save more, which lowers the interest rate and incites firms to automate more. To operationalize this, I build a tractable heterogeneous-agent model (1) with wealth in the utility function as a luxury good, and (2) a firm-side choice on automation. I find that introducing realistic savings rate heterogeneity largely eliminates the need for ad hoc technology shifts. Rather, automation is the outcome of increased top income concentration, not just its driver. |
| Keywords: | automation, wealth inequality, capitalist spirit, task-based production, heterogeneous-agent |
| JEL: | E25 J23 O33 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202505-475 |
| By: | David Dorn; Florian Schoner; Moritz Seebacher; Lisa Simon; Ludger Woessmann |
| Abstract: | We measure human capital using the self-reported skill sets of nearly 9 million U.S. college graduates from professional profiles on LinkedIn. We aggregate skill strings into 48 clusters of general, occupation-specific, and managerial skills. Multidimensional skills can account for several important labor-market patterns. First, the number and composition of skills are systematically related to measures of human-capital investment such as education and work experience. The number of skills increases with experience, and the average age-skill profile closely resembles the well-established concave age-earnings profile. Second, workers who report more skills, especially specific and managerial ones, hold higher-paid jobs. Skill differences account for more earnings variation than detailed measures of education and experience. Third, we document a sizable gender gap in skills. While women and men report nearly equal numbers of skills shortly after college graduation, women’s skill count increases more slowly with age subsequently. A simple quantitative exercise shows that women’s slower skill accumulation can be fully accounted for by reduced work hours associated with motherhood. The resulting gender differences in skills rationalize a substantial proportion of the gender gap in job-based earnings. |
| Keywords: | skills, human capital, gender, education, experience, social media, online professional network, labor market, tasks, earnings. |
| JEL: | I26 J16 J24 J31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11846 |