No Longer Qualified? Changes in the Supply and Demand for Skills within Occupations

Alicia Modestino, Mary Burke, Shahriar Sadighi (), Rachel Sederberg (), Tomere Stern () and Bledi Taska ()
Additional contact information
Shahriar Sadighi: Amazon
Rachel Sederberg: Lightcast
Tomere Stern: Northeastern University
Bledi Taska: Lightcast

No 16542, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Although labor market "mismatch" often refers to an imbalances in supply and demand across occupations, mismatch within occupations can arise if skill requirements are changing over time, potentially reducing aggregate matching efficiency within the labor market. To test this, we examine changes in employer education and skill requirements using a database of 200 million U.S. online job postings between 2007 and 2019. We find that the degree of persistence in educational upskilling lasted longer than was previously known and was not uniform but rather varied considerably across occupations and was often coupled with an increased demand for software skills. We also find evidence that upskilling contributed to reduced matching efficiency in certain segments of the US labor market as well as in the aggregate. In particular, matching efficiency was lower in higher-skilled occupations, potentially because they are becoming more specialized, and possibly explaining growing wage polarization and inequality.

Keywords: unemployment; vacancies; skills; labor demand; firm behavior (search for similar items in EconPapers)
JEL-codes: D22 E24 J23 J24 J63 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2023-10
New Economics Papers: this item is included in nep-lma
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Working Paper: No Longer Qualified? Changes in the Supply and Demand for Skills within Occupations (2019)
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