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Skill Formation and Career Dynamics

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  • Shintaro Yamaguchi

    (McMaster University)

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://www.economicdynamics.org/meetpapers/2008/paper_300.pdf
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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 300.

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Date of creation: 2008
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Handle: RePEc:red:sed008:300

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  1. Ronni Pavan, 2011. "Career Choice and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 29(3), pages 549 - 587.
  2. Giuseppe Moscarini & Francis Vella, 2002. "Aggregate worker reallocation and occupational mobility in the United States: 1971-2000," IFS Working Papers W02/18, Institute for Fiscal Studies.
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