Career Progression and Comparative Advantage
AbstractThis paper constructs and structurally estimates a dynamic occupational choice model that has two distinct features. First, an occupation is vertically and horizontally differentiated by a multidimensional task complexity measure. This allows a simultaneous analysis of career progression and comparative advantage. Second, the model includes hundreds of occupations by characterizing all jobs by a multidimensional task complexity vector, thereby avoiding the curse of dimensionality. Estimation results from the Dictionary of Occupational Titles (DOT) and the National Longitudinal Survey of Youth 1979 (NLSY) indicate that wages increase according to task complexity and that individuals climb up the career ladder along the dimension of tasks in which they have a comparative advantage.
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Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 2008-03.
Length: 35 pages
Date of creation: Feb 2008
Date of revision:
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More information through EDIRC
Career decisions; dynamic stochastic discrete choice model;
Other versions of this item:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-16 (All new papers)
- NEP-DCM-2008-02-16 (Discrete Choice Models)
- NEP-LAB-2008-02-16 (Labour Economics)
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