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Partial Specialization and Heterogeneous Task Assignments

Author

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  • Chen Liu

Abstract

I develop a general equilibrium model featuring multidimensional skills and partial specialization in tasks to quantify the impact of several determinants on within-occupation inequality growth from 1980 to 2000. The model introduces a new mechanism by which demand shifts affect inequality: Workers within the same occupation perform multiple and different tasks. I structurally estimate the model using microdata and account for inequality growth due to three sources: changes in occupation demand, changes in the task content of occupations, and changes in labor composition. My findings indicate that changes in task content explain the majority of within-occupation inequality growth.

Suggested Citation

  • Chen Liu, 2026. "Partial Specialization and Heterogeneous Task Assignments," American Economic Journal: Macroeconomics, American Economic Association, vol. 18(2), pages 112-147, April.
    • Handle: RePEc:aea:aejmac:v:18:y:2026:i:2:p:112-47
    DOI: 10.1257/mac.20230209
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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