Multidimensional Skills, Sorting, and Human Capital Accumulation
American Economic Review
vol. 110,
no. 8, August 2020
(pp. 2328-76)
Abstract
We construct a structural model of on-the-job search in which workers differ in skills along several dimensions and sort themselves into jobs with heterogeneous skill requirements along those same dimensions. Skills are accumulated when used, and depreciate when not used. We estimate the model combining data from O*NET with the NLSY79. We use the model to shed light on the origins and costs of mismatch along heterogeneous skill dimensions. We highlight the deficiencies of relying on a unidimensional model of skill when decomposing the sources of variation in the value of lifetime output between initial conditions and career shocks.Citation
Lise, Jeremy, and Fabien Postel-Vinay. 2020. "Multidimensional Skills, Sorting, and Human Capital Accumulation." American Economic Review, 110 (8): 2328-76. DOI: 10.1257/aer.20162002Additional Materials
JEL Classification
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J41 Labor Contracts
- J64 Unemployment: Models, Duration, Incidence, and Job Search