Expertise at Work: New Technologies, New Skills, and Worker Impacts

Anna Salomons (), Cäcilia vom Baur () and Ulrich Zierahn-Weilage ()
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Anna Salomons: Tilburg University
Cäcilia vom Baur: ifo Institute, University of Munich
Ulrich Zierahn-Weilage: Utrecht School of Economics

No 18248, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Does educational content respond to technological advances, enabling workers to acquire new expertise? We study how digital technology transforms skill acquisition and impacts workers' careers. We construct a novel database of legally binding vocational training curricula in Germany over 5 decades, and link curriculum updates to breakthrough technologies using Natural Language Processing. Technological change spurs curriculum updates, shifting training content toward digital and social skills while reducing routine-intensive task content, predominantly through new skill emergence. Curriculum updates account for two-thirds of deroutinization in vocational skill supply over this period. Using administrative employer-employee data and a stacked DiD design, we show curriculum updates help workers adapt: new-skilled workers earn higher wages, with increases up to 5.5\% for technology-exposed occupations. In contrast, older incumbents experience wage declines, indicating skill obsolescence. Firms increase capital investments when exposed to workers with updated skills, consistent with capital-skill complementarity. These findings highlight within-occupation skill supply adjustments' central role in meeting evolving labor market demands.

Keywords: vocational training; skill obsolescence; skill updating; technological change; educational content (search for similar items in EconPapers)
JEL-codes: J23 J24 J31 O33 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-lma and nep-tid
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