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What Skills Pay More? The Changing Demand and Return to Skills for Professional Workers

Author

Listed:
  • Josten, Cecily

    (London School of Economics)

  • Krause, Helen

    (Citi, Citigroup Centre)

  • Lordan, Grace

    (London School of Economics)

  • Yeung, Brian

    (Citi, Citigroup Centre)

Abstract

Technology is disrupting labor markets. We analyze the demand and reward for skills at occupation and state level across two time periods using job postings. First, we use principal components analysis to derive nine skills groups: 'collaborative leader', 'interpersonal & organized', 'big data', 'cloud computing', 'programming', 'machine learning', 'research', 'math' and 'analytical'. Second, we comment on changes in the price and demand for skills over time. Third, we analyze non-linear returns to all skills groups and their interactions. We find that 'collaborative leader' skills become significant over time and that legacy data skills are replaced over time by innovative ones.

Suggested Citation

  • Josten, Cecily & Krause, Helen & Lordan, Grace & Yeung, Brian, 2024. "What Skills Pay More? The Changing Demand and Return to Skills for Professional Workers," IZA Discussion Papers 16755, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16755
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    References listed on IDEAS

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    Cited by:

    1. Ludger Woessmann, 2024. "Skills and Earnings: A Multidimensional Perspective on Human Capital," CESifo Working Paper Series 11428, CESifo.

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    More about this item

    Keywords

    skills; cognitive skills; soft skills; inclusive leadership; wages; demand for skills;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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