Occupation Growth, Skill Prices, and Wage Inequality

A-Tier
Journal: Journal of Labor Economics
Year: 2024
Volume: 42
Issue: 1
Pages: 201 - 243

Authors (3)

Michael J. Böhm (not in RePEc) Hans-Martin von Gaudecker (Rheinische Friedrich-Wilhelms-...) Felix Schran (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the relationship among occupational employment, occupational wages, and wage inequality. In all occupations, entrants and leavers earn less than stayers, suggesting negative selection effects for growing occupations and positive effects for shrinking ones. We estimate a model of occupational prices and skills that includes specific skill accumulation and endogenous switching. Contrary to uncorrected wages, prices and employment growth are positively related. Forty percent of selection is due to age, as entrants and leavers have had less time to accumulate skills. The remainder is Roy-type selection. Skill prices establish a quantitative connection of occupational changes with surging wage inequality.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/722084
Journal Field
Labor
Author Count
3
Added to Database
2026-01-29