Multidimensional Skills, Sorting, and Human Capital Accumulation

Fabien Postel-Vinay and Jeremy Lise

No 386, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: We construct a structural model of on-the-job search in which workers differ in skills along several dimensions (cognitive, manual, interpersonal) and sort themselves into jobs with heterogeneous skill requirements along those same dimensions. We further allow for skills to be accumulated when used, and eroded away when not used. We estimate the model using occupation-level measures of skill requirements based on O*NET data, combined with a worker-level panel from the NLSY79. We use the estimated model to shed light on the origins and costs of mismatch along the cognitive, manual, and interpersonal skill dimensions. Our results clearly suggest that those three types of skills are very different productive attributes.

Date: 2015
New Economics Papers: this item is included in nep-dge and nep-hrm
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Journal Article: Multidimensional Skills, Sorting, and Human Capital Accumulation (2020)
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