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On Simplifying the Structure of Labour Demand: An Analysis of the DOT Data

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Author Info

  • Vijverberg, Wim P.

    ()
    (CUNY Graduate Center)

  • Hartog, Joop

    ()
    (University of Amsterdam)

Abstract

We analyse the information in the Dictionary of Occupational Titles to characterize the structure of labour demand. Two dimensions, an intellectual factor and a dexterity factor capture most variation in job requirements. Job complexity in relation to Things correlates highly with the dexterity factor. Complexity in relation to Data is intricately interwoven with most other dimensions of jobs. Remarkably, while complexity in relation to Data and to Things associates with extensive training, this does not hold for complexity in relation to People. There is no dichotomy between mathematical and verbal required skills. Poor working conditions are not the exclusive prerogative for workers in low level jobs. This independence provides a good setting for testing the theory of compensating wage differentials and indeed we find a good deal of support.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1809.

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Length: 24 pages
Date of creation: Oct 2005
Date of revision:
Publication status: published in: Applied Economics, 2010, 42(13), 1747-1760
Handle: RePEc:iza:izadps:dp1809

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Related research

Keywords: job requirements; compensating differentials; labor demand structure;

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  1. Lucas, Robert E B, 1977. "Hedonic Wage Equations and Psychic Wages in the Returns to Schooling," American Economic Review, American Economic Association, vol. 67(4), pages 549-58, September.
  2. Murnane, Richard J & Willett, John B & Levy, Frank, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 251-66, May.
  3. Brown, Charles, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 113-34, February.
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Cited by:
  1. Karlygash Kuralbayeva & Radoslaw Stefanski, 2010. "Windfalls, Structural Transformation and Specialization," OxCarre Working Papers 054, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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