The Evolution of Skill Use Within and Between Jobs

We develop a tractable general equilibrium model for understanding within- and between-occupation changes in skill use over time. We apply the model to skill-use measures from the third, fourth, and revised fourth editions of the Dictionary of Occupational Titles and data from the 1960, 1970, and 19...

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Bibliographic Details
Published in:NBER Working Paper Series 2021-09
Main Authors: Cavounidis, Costas, Dicandia, Vittoria, Lang, Kevin, Malhotra, Raghav
Format: Article
Language:English
Subjects:
Dictionaries
Economic theory
Economics
Employment
Equilibrium
Productivity
Skills
Technological change
Workers
Online Access:Get full text
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Summary:We develop a tractable general equilibrium model for understanding within- and between-occupation changes in skill use over time. We apply the model to skill-use measures from the third, fourth, and revised fourth editions of the Dictionary of Occupational Titles and data from the 1960, 1970, and 1980 Censuses and March Current Population Surveys. We recover changes in skill productivity by exploiting between-occupation movements. Most importantly, finger-dexterity productivity grew rapidly while abstract-skill productivity lagged. We leverage these findings to estimate an inelastic relation between abstract and routine inputs and explain within-occupation shifts in skill use.
ISSN:0898-2937
DOI:10.3386/w29302