The assignment of workers to tasks with endogenous supply of skills

Arnaud Dupuy ()

No 2013-04, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: This paper presents a general equilibrium assignment model of workers to tasks with endogenous supply of skills. The model has 2 key features. First, skills are endogenous and multidimensional. Second, two types of assignment occur; workers self-select the type of skills to supply and firms assign workers to tasks/machines. Equilibrium is characterized by two functions mapping skills of each type to tasks and two wage functions, one for each type of skills, so that the wage distributions generally overlap. The model shows that the impact of any given skill-biased technical change on wage inequality is tightly related to the distribution of skills in the population. Productivity effects can be over or under estimated by wage data when the supply of skills is endogenous. The model also shows that Johnson’s (1997) distinction between intensive and extensive technical change is impossible when supply is endogenous.

Keywords: tasks assignment; endogenous supply of skills; multidimensional skills; human capital; technical change and usage distribution (search for similar items in EconPapers)
JEL-codes: D30 J21 J23 J31 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-03
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-lma
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Related works:
Journal Article: The Assignment of Workers to Tasks with Endogenous Supply of Skills (2015)
Working Paper: The Assignment of Workers to Tasks with Endogenous Supply of Skills (2013)
Working Paper: The assignment of workers to tasks with endogenous supply of skills (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2013-04

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