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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.
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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
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    JEL classification:

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

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