Firms and Skills: The Evolution of Worker Sorting

Christina Håkanson, Erik Lindqvist and Jonas Vlachos

Journal of Human Resources, 2021, vol. 56, issue 2, 512-538

Abstract: We document a significant increase in the sorting of workers by cognitive and noncognitive skills across Swedish firms during 1986–2008. During this period, worker skill differences between firms increased, while within-firm skill differences fell. A significant fraction of the increase in the between-firm differences in cognitive skill is due to high-skilled workers moving into the information and communications technology (ICT) sector. Within-firm skill differences fell in all major industries, but particularly in the manufacturing sector. Combined with steeper firm-level skill gradients, the increase in sorting can account for 45 percent of the increase in between-firm wage dispersion during our period of study.

Date: 2021
Note: DOI: 10.3368/jhr.56.2.0517-8801R2
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Related works:
Working Paper: Firms and skills: the evolution of worker sorting (2015)
Working Paper: Firms and Skills: The Evolution of Worker Sorting (2015)
Working Paper: Firms and skills: the evolution of worker sorting (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:56:y:2021:i:2:p:512-538

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