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Digitalization, Change in Skill Distance Between Occupations and Occupational Mobility

Author

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  • Arnaud Dupuy
  • Morgan Raux
  • Sara Signorelli

Abstract

Technological change affects labor markets not only by shifting labor demand across occupations, but also by reshaping the skill distances that govern workers' ability to move between jobs. This paper studies the digitalization wave of the 2010s using task data from online job postings, matched employer-employee data, and a gravity framework of occupational mobility. We show that while most occupations became more digital, skill distances converged for some occupation pairs and diverged for others, increasing mobility along some pathways and reducing it along others. Counterfactual simulations show that these frictions are meaningful and slow reallocation out of shrinking occupations.

Suggested Citation

  • Arnaud Dupuy & Morgan Raux & Sara Signorelli, 2026. "Digitalization, Change in Skill Distance Between Occupations and Occupational Mobility," RFBerlin Discussion Paper Series 26062, ROCKWOOL Foundation Berlin (RFBerlin).
    • Handle: RePEc:crm:wpaper:26062
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    Keywords

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    JEL classification:

    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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