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Using Domain-Specific Word Embeddings to Examine the Demand for Skills

Author

Listed:
  • Chaturvedi, Sugat

    (Ahmedabad University)

  • Mahajan, Kanika

    (Ashoka University)

  • Siddique, Zahra

    (University of Bristol)

Abstract

We study the demand for skills by using text analysis methods on job descriptions in a large volume of ads posted on an online Indian job portal. We make use of domain-specific unlabeled data to obtain word vector representations (i.e., word embeddings) and discuss how these can be leveraged for labor market research. We start by carrying out a data-driven categorization of required skill words and construct gender associations of different skill categories using word embeddings. Next, we examine how different required skill categories correlate with log posted wages as well as explore how skills demand varies with firm size. We find that female skills are associated with lower posted wages, potentially contributing to observed gender wage gaps. We also find that large firms require a more extensive range of skills, implying that complementarity between female and male skills is greater among these firms.

Suggested Citation

  • Chaturvedi, Sugat & Mahajan, Kanika & Siddique, Zahra, 2023. "Using Domain-Specific Word Embeddings to Examine the Demand for Skills," IZA Discussion Papers 16593, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16593
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    References listed on IDEAS

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    More about this item

    Keywords

    text analysis; online job ads; gender; skills demand; machine learning;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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