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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 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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File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2008-03.pdf
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Paper provided by McMaster University in its series Department of Economics Working Papers with number 2008-03.

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Length: 35 pages
Date of creation: Feb 2008
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Handle: RePEc:mcm:deptwp:2008-03

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Related research
Keywords: Career decisions; dynamic stochastic discrete choice model;

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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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