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The skill-specifc impact of past and projected occupational declinea

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  • Hensvik, Lena

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Nordström Skans, Oskar

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

Abstract

Using very detailed register data on cognitive abilities and productive personality traits for nearly all Swedish males at age 18, we show that employment in the recent past has shifted towards skill-intensive occupations. Employment growth is monotonically skill biased in relation to this set of general-purpose transferable skills, despite the well-known U-shaped (”polarizing”) relationship to occupational wage ranks. The patterns coexist because growing low-wage occupations tend to employ workers who are comparably skilled in these dimensions, whereas workers in declining mid-wage occupations instead have less of these general non-manual skills than suggested by their wages. Employment has primarily increased in occupations where workers have larger-than-average endowments of verbal and technical abilities and social maturity. Projections of future occupational decline and automation risks are even more skill-biased, but show similar associations to most of our specifc skill-measures. The most pronounced difference is that occupations relying on tolerance to stress are projected to decline in the coming decades.

Suggested Citation

  • Hensvik, Lena & Nordström Skans, Oskar, 2019. "The skill-specifc impact of past and projected occupational declinea," Working Paper Series 2019:28, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2019_028
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    Cited by:

    1. Gardberg, Malin & Heyman, Fredrik & Norbäck, Pehr-Johan & Persson, Lars, 2020. "Digitization-based automation and occupational dynamics," Economics Letters, Elsevier, vol. 189(C).
    2. Nordström Skans, Oskar & Choné, Philippe & Kramarz, Francis, 2022. "When workers’ skills become unbundled: Some empirical consequences for sorting and wages," Working Paper Series 2022:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Neumann, Uwe, 2023. "Regional adaptability to digital change: May the Swabian force be with you," Ruhr Economic Papers 1004, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Graetz, Georg, 2020. "Technological change and the Swedish labor market," Working Paper Series 2020:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Ilyés, Virág & Sebők, Anna, 2023. "University peers and career prospects: The impact of university ties on early labor market outcomes," Economics of Education Review, Elsevier, vol. 96(C).

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    More about this item

    Keywords

    Skills; Polarization; Future of Work;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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