IDEAS home Printed from https://ideas.repec.org/h/nbr/nberch/13725.html
   My bibliography  Save this book chapter

Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals

In: Firms and the Distribution of Income: The Roles of Productivity and Luck

Author

Listed:
  • David Deming
  • Lisa B. Kahn

Abstract

We study variation in skill demands for professionals across firms and labor markets. We categorize a wide range of keywords found in job ads into 10 general skills. There is substantial variation in these skill requirements, even within narrowly defined occupations. Focusing particularly on cognitive and social skills, we find positive correlations between each skill and external measures of pay and firm performance. We also find evidence of a cognitive social skill complementarity for both outcomes. As a whole, job skills have explanatory power in pay and firm performance regressions beyond what is available in widely used labor market data.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • David Deming & Lisa B. Kahn, 2015. "Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals," NBER Chapters, in: Firms and the Distribution of Income: The Roles of Productivity and Luck, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:13725
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joseph G. Altonji & Lisa B. Kahn & Jamin D. Speer, 2014. "Trends in Earnings Differentials across College Majors and the Changing Task Composition of Jobs," American Economic Review, American Economic Association, vol. 104(5), pages 387-393, May.
    2. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 967-1015.
    3. Modestino, Alicia Sasser & Shoag, Daniel & Ballance, Joshua, 2015. "Upskilling: Do Employers Demand Greater Skill When Workers Are Plentiful?," Working Paper Series rwp15-013, Harvard University, John F. Kennedy School of Government.
    4. Paul Beaudry & David A. Green & Benjamin M. Sand, 2016. "The Great Reversal in the Demand for Skill and Cognitive Tasks," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 199-247.
    5. repec:wyi:journl:002164 is not listed on IDEAS
    6. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1351-1408.
    7. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    8. Marinescu, Ioana, 2017. "The general equilibrium impacts of unemployment insurance: Evidence from a large online job board," Journal of Public Economics, Elsevier, vol. 150(C), pages 14-29.
    9. Rebecca Diamond, 2016. "The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000," American Economic Review, American Economic Association, vol. 106(3), pages 479-524, March.
    10. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    11. Brad Hershbein & Lisa B. Kahn, 2018. "Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings," American Economic Review, American Economic Association, vol. 108(7), pages 1737-1772, July.
    12. Heckman, James J. & Kautz, Tim, 2012. "Hard evidence on soft skills," Labour Economics, Elsevier, vol. 19(4), pages 451-464.
    13. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    14. Catherine J. Weinberger, 2014. "The Increasing Complementarity between Cognitive and Social Skills," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 849-861, December.
    15. Erling Barth & Alex Bryson & James C. Davis & Richard Freeman, 2016. "It's Where You Work: Increases in the Dispersion of Earnings across Establishments and Individuals in the United States," Journal of Labor Economics, University of Chicago Press, vol. 34(S2), pages 67-97.
    16. Peter Kuhn & Kailing Shen, 2013. "Gender Discrimination in Job Ads: Evidence from China," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 287-336.
    17. Christina Gathmann & Uta Schönberg, 2010. "How General Is Human Capital? A Task-Based Approach," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 1-49, January.
    18. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    19. Ioana Marinescu & Ronald Wolthoff, 2020. "Opening the Black Box of the Matching Function: The Power of Words," Journal of Labor Economics, University of Chicago Press, vol. 38(2), pages 535-568.
    20. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    21. Lex Borghans & Bas Ter Weel & Bruce A. Weinberg, 2014. "People Skills and the Labor-Market Outcomes of Underrepresented Groups," ILR Review, Cornell University, ILR School, vol. 67(2), pages 287-334, April.
    22. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.),Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    23. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 132(4), pages 1593-1640.
    24. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
    25. Robert Gibbons, Editor & John Roberts, Editor, 2012. "The Handbook of Organizational Economics," Economics Books, Princeton University Press, edition 1, number 9889.
    26. Jamin D. Speer, 2017. "Pre-Market Skills, Occupational Choice, and Career Progression," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 187-246.
    27. David Autor, 2014. "Polanyi's Paradox and the Shape of Employment Growth," NBER Working Papers 20485, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pater, Robert & Szkola, Jaroslaw & Kozak, Marcin, 2019. "A method for measuring detailed demand for workers' competences," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 13, pages 1-30.
    2. Faryna, Oleksandr & Pham, Tho & Talavera, Oleksandr & Tsapin, Andriy, 2020. "Wage Setting and Unemployment: Evidence from Online Job Vacancy Data," GLO Discussion Paper Series 503, Global Labor Organization (GLO).
    3. Enghin Atalay & Phai Phongthiengtham & Sebastian Sotelo & Daniel Tannenbaum, 2020. "The Evolution of Work in the United States," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 1-34, April.
    4. José Azar & Emiliano Huet-Vaughn & Ioana Marinescu & Bledi Taska & Till von Wachter, 2019. "Minimum Wage Employment Effects and Labor Market Concentration," NBER Working Papers 26101, National Bureau of Economic Research, Inc.
    5. Mustafa Caglayan & Oleksandr Talavera & Lin Xiong, 2020. "Female Small Business Owners in China: Discouraged, not Discriminated," Discussion Papers 20-04, Department of Economics, University of Birmingham.
    6. Davide Consoli & Giovanni Marin & Francesco Rentocchini & Francesco Vona, 2019. "Routinization, Within-Occupation Task Changes and Long-Run Employment Dynamics," LEM Papers Series 2019/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Wei Cheng & Patrick Carlin & Joanna Carroll & Sumedha Gupta & Felipe Lozano Rojas & Laura Montenovo & Thuy D. Nguyen & Ian M. Schmutte & Olga Scrivner & Kosali I. Simon & Coady Wing & Bruce Weinberg, 2020. "Back to Business and (Re)employing Workers? Labor Market Activity During State COVID-19 Reopenings," NBER Working Papers 27419, National Bureau of Economic Research, Inc.
    8. Fabienne Kiener & Ann-Sophie Gnehm & Simon Clematide & Uschi Backes-Gellner, 2019. "Different Types of IT Skills in Occupational Training Curricula and Labor Market Outcomes," Economics of Education Working Paper Series 0159, University of Zurich, Department of Business Administration (IBW).
    9. Ian Burn & Patrick Button & Luis Felipe Munguia Corella & David Neumark, 2019. "Older Workers Need Not Apply? Ageist Language in Job Ads and Age Discrimination in Hiring," NBER Working Papers 26552, National Bureau of Economic Research, Inc.
    10. Barbieri, Nicolò & Consoli, Davide, 2019. "Regional diversification and green employment in US metropolitan areas," Research Policy, Elsevier, vol. 48(3), pages 693-705.
    11. Peter Q. Blair & David J. Deming, 2020. "Structural Increases in Skill Demand after the Great Recession," NBER Working Papers 26680, National Bureau of Economic Research, Inc.
    12. Peter Hoeschler & Uschi Backes-Gellner, 2017. "The Relative Importance of Personal Characteristics for the Hiring of Young Workers," Economics of Education Working Paper Series 0142, University of Zurich, Department of Business Administration (IBW), revised Jan 2018.
    13. Filippetti, Andrea & Guy, Frederick, 2020. "Labor market regulation, the diversity of knowledge and skill, and national innovation performance," Research Policy, Elsevier, vol. 49(1).
    14. Handel, Michael J., 2020. "Job Skill Requirements: Levels and Trends," MPRA Paper 100590, University Library of Munich, Germany.
    15. Morgan Raux, 2019. "Looking for the "Best and Brightest": Hiring difficulties and high-skilled foreign workers," AMSE Working Papers 1934, Aix-Marseille School of Economics, France.
    16. Maciej Berk{e}sewicz & Greta Bia{l}kowska & Krzysztof Marcinkowski & Magdalena Ma'slak & Piotr Opiela & Robert Pater & Katarzyna Zadroga, 2019. "Enhancing the Demand for Labour survey by including skills from online job advertisements using model-assisted calibration," Papers 1908.06731, arXiv.org.
    17. Nuarpear Warn Lekfuangfu & Voraprapa Nakavachara & Paphatsorn Sawaengsuksant, 2017. "Glancing at Labour Market Mismatch with User-generated Internet Data," PIER Discussion Papers 53, Puey Ungphakorn Institute for Economic Research, revised Jan 2017.
    18. Raj Chetty & John N. Friedman & Nathaniel Hendren & Michael Stepner & The Opportunity Insights Team, 2020. "How Did COVID-19 and Stabilization Policies Affect Spending and Employment? A New Real-Time Economic Tracker Based on Private Sector Data," NBER Working Papers 27431, National Bureau of Economic Research, Inc.
    19. Morgan Raux, 2019. "Looking for the "Best and Brightest": Hiring difficulties and high-skilled foreign workers," Working Papers halshs-02364921, HAL.
    20. Brancatelli,Calogero & Marguerie,Alicia Charlene & Koettl-Brodmann,Stefanie, 2020. "Job Creation and Demand for Skills in Kosovo : What Can We Learn from Job Portal Data?," Policy Research Working Paper Series 9266, The World Bank.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:13725. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.