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Shifts in the Demand and Supply of Skills in the OECD: A Single‐Index Model with a Continuous Distribution of Skills

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  • Marco Manacorda
  • Alan Manning

Abstract

This paper proposes a one‐dimensional index for the gap between the demand and supply of skills; this index can be estimated based on the labour market performance of groups defined with characteristics (e.g. education) that are only imperfectly correlated with labour market skills. Using data from five European countries and the US, we find that the relative demand for skills has increased more than the relative supply in the US and UK during the 1980s but not in other European countries. However, the gap between relative demand and supply increased in Italy and the Netherlands from the early 1990s.

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  • Marco Manacorda & Alan Manning, 2007. "Shifts in the Demand and Supply of Skills in the OECD: A Single‐Index Model with a Continuous Distribution of Skills," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(5), pages 635-666, October.
    • Handle: RePEc:bla:obuest:v:69:y:2007:i:5:p:635-666
    DOI: 10.1111/j.1468-0084.2007.00468.x
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    References listed on IDEAS

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    1. Kevin M. Murphy & W. Craig Riddell & Paul M. Romer, 1998. "Wages, Skills, and Technology in the United States and Canada," NBER Working Papers 6638, National Bureau of Economic Research, Inc.
    2. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins of Technology-Skill Complementarity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 693-732.
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    Cited by:

    1. Paolo Mariani & Andrea Marletta & Mauro Mussini & Mariangela Zenga, 2021. "Professional Profiles and Job Requirements in Labour Demand: An Analysis of the Italian Information Technology Sector," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(2), pages 651-667, August.

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