What Skills Pay More? The Changing Demand and Return to Skills for Professional Workers

Cecily Josten (), Helen Krause (), Grace Lordan and Brian Yeung
Additional contact information
Cecily Josten: London School of Economics
Helen Krause: Citi, Citigroup Centre
Brian Yeung: Citi, Citigroup Centre

No 16755, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Technology is disrupting labor markets. We analyze the demand and reward for skills at occupation and state level across two time periods using job postings. First, we use principal components analysis to derive nine skills groups: 'collaborative leader', 'interpersonal & organized', 'big data', 'cloud computing', 'programming', 'machine learning', 'research', 'math' and 'analytical'. Second, we comment on changes in the price and demand for skills over time. Third, we analyze non-linear returns to all skills groups and their interactions. We find that 'collaborative leader' skills become significant over time and that legacy data skills are replaced over time by innovative ones.

Keywords: skills; cognitive skills; soft skills; inclusive leadership; wages; demand for skills (search for similar items in EconPapers)
JEL-codes: J10 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2024-01
New Economics Papers: this item is included in nep-hrm, nep-inv and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: What skills pay more? The changing demand and return to skills for professional workers (2024)
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