Mapping job complexity and skills into wages

Sabrina Aufiero, Giordano De Marzo, Angelica Sbardella and Andrea Zaccaria

Papers from arXiv.org

Abstract: We use algorithmic and network-based tools to build and analyze the bipartite network connecting jobs with the skills they require. We quantify and represent the relatedness between jobs and skills by using statistically validated networks. Using the fitness and complexity algorithm, we compute a skill-based complexity of jobs. This quantity is positively correlated with the average salary, abstraction, and non-routinarity level of jobs. Furthermore, coherent jobs - defined as the ones requiring closely related skills - have, on average, lower wages. We find that salaries may not always reflect the intrinsic value of a job, but rather other wage-setting dynamics that may not be directly related to its skill composition. Our results provide valuable information for policymakers, employers, and individuals to better understand the dynamics of the labor market and make informed decisions about their careers.

Date: 2023-04
New Economics Papers: this item is included in nep-hme and nep-net
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