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Career Progression and Comparative Advantage

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Author Info
Shintaro Yamaguchi

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Abstract

This paper constructs and structurally estimates a dynamic model of occupational choice where all occupations are characterized in a continuous multidimensional space of skill requirement using the data from the Dictionary of Occupational Titles and the NLSY79. This skill space approach allows the model to include hundreds of occupations at the three-digit census classification level without a large number of parameters. Thereby it provides more detailed analysis of occupations than previous papers. Parameter estimates indicate that skill demanding occupations offer higher returns to education and experience, which results in occupational sorting. They also suggest that the estimated skill prices by the OLS are severely biased due to this sorting.

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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd08-025.

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Date of creation: Jan 2009
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Handle: RePEc:hst:ghsdps:gd08-025

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Related research
Keywords: Occupational choice; occupational sorting; human capital; skills; structural estimation;

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  1. Donghoon Lee & Kenneth I. Wolpin, 2006. "Intersectoral Labor Mobility and the Growth of the Service Sector," Econometrica, Econometric Society, vol. 74(1), pages 1-46, 01. [Downloadable!] (restricted)
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  2. Christian Belzil, 2007. "The Return to Schooling in Structural Dynamic Models: A Survey," Post-Print halshs-00201230_v1, HAL. [Downloadable!]
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  3. Miller, Robert A, 1984. "Job Matching and Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1086-120, December. [Downloadable!] (restricted)
  4. Ingram, Beth F. & Neumann, George R., 2006. "The returns to skill," Labour Economics, Elsevier, vol. 13(1), pages 35-59, February. [Downloadable!] (restricted)
  5. David Autor & Frank Levy & Richard Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov. [Downloadable!]
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  6. Ronni Pavan, 2006. "Career Choice and Wage Growth," 2006 Meeting Papers 504, Society for Economic Dynamics.
  7. Iourii Manovskii & Gueorgui Kambourov, 2004. "Occupational Specificity of Human Capital," 2004 Meeting Papers 197, Society for Economic Dynamics. [Downloadable!]
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  8. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
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  9. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 169-92, February. [Downloadable!] (restricted)
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  10. Jovanovic, Boyan & Nyarko, Yaw, 1997. "Stepping-stone mobility," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 46(1), pages 289-325, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-11.

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