Skill Demand and Labour Market Concentration: Theory and Evidence from Italian Vacancies

This paper analyses the relationship between labor market concentration and employers' skill demand. Using a novel data set on Italian online job vacancies during 2013-2018 we show that employers in a highly concentrated labor market demand competencies associated with the ability of workers to learn faster (e.g. Social skills) rather than actual knowledge. They also require less experience but higher education. These results are consistent with the hypothesis that employers in more concentrated labor markets are more prone to train their employees. Instead of looking for workers who already have job-specific skills, they look for workers who can acquire them faster and efficiently.