Skill mismatch and learning-by-doing: Theory and evidence from time allocation on tasks

Eduard Storm

No 1021, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper studies wage effects and job mobility as a result of skill mismatch in worker- occupation pairs. I develop a Roy model in which learning on the job induces workers to shift more time towards job-specific activities. Using a short task panel containing data on worker's time allocation of job tasks, I test the model's implications and present three main findings. First, workers who are overqualified in their initial occupation in regards to abstract tasks are more likely to switch to another job by up to 19 pp. Second, task-based learning only pays off with respect to acquisition of abstract skills and is associated with a return of up to 2-3% with each year of experience. Third, gains from task-based learning are heterogenous and benefit primarily workers in abstract-intensive occupations. My findings highlight the effects of investments in job-specific skills on wage growth and job mobility.

Keywords: Learning-by-Doing; occupational mobility; skill mismatch; task panel; task tenure; wage determination (search for similar items in EconPapers)
JEL-codes: J24 J31 J62 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/273357/1/1851485112.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:1021

DOI: 10.4419/96973187

Access Statistics for this paper

More papers in Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().