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Expertise at Work: New Technologies, New Skills, and Worker Impacts

Author

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  • Salomons, Anna

    (Tilburg University)

  • vom Baur, Cäcilia

    (ifo Institute, University of Munich)

  • Zierahn-Weilage, Ulrich

    (Utrecht School of Economics)

Abstract

Does educational content respond to technological advances, enabling workers to acquire new expertise? We study how digital technology transforms skill acquisition and impacts workers' careers. We construct a novel database of legally binding vocational training curricula in Germany over 5 decades, and link curriculum updates to breakthrough technologies using Natural Language Processing. Technological change spurs curriculum updates, shifting training content toward digital and social skills while reducing routine-intensive task content, predominantly through new skill emergence. Curriculum updates account for two-thirds of deroutinization in vocational skill supply over this period. Using administrative employer-employee data and a stacked DiD design, we show curriculum updates help workers adapt: new-skilled workers earn higher wages, with increases up to 5.5\% for technology-exposed occupations. In contrast, older incumbents experience wage declines, indicating skill obsolescence. Firms increase capital investments when exposed to workers with updated skills, consistent with capital-skill complementarity. These findings highlight within-occupation skill supply adjustments' central role in meeting evolving labor market demands.

Suggested Citation

  • Salomons, Anna & vom Baur, Cäcilia & Zierahn-Weilage, Ulrich, 2025. "Expertise at Work: New Technologies, New Skills, and Worker Impacts," IZA Discussion Papers 18248, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp18248
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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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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