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Digitalization, Change in Skill Distance between Occupations and Worker Mobility: A Gravity Model Approach

Author

Listed:
  • Dupuy, Arnaud

    (University of Luxembourg)

  • Raux, Morgan

    (University of Luxembourg)

  • Signorelli, Sara

    (CREST)

Abstract

The recent digital revolution has significantly broadened the scope of IT-related tasks in most occupations in the labor market. In this paper, we document these changes, we propose a novel conceptual framework for thinking about the effect of technological change that incorporates the changing task distance between occupations, and we investigate its impact on worker mobility using a gravity equation approach. Our results reveal that the evolution of skill distance between jobs significantly affected mobility patterns, disproportionately favoring workers with preexisting knowledge of digital tools. Finally, we micro-found our gravity equation through a matching model to evaluate mobility in counterfactual scenarios without technological change.

Suggested Citation

  • Dupuy, Arnaud & Raux, Morgan & Signorelli, Sara, 2024. "Digitalization, Change in Skill Distance between Occupations and Worker Mobility: A Gravity Model Approach," IZA Discussion Papers 17535, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17535
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    References listed on IDEAS

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    More about this item

    Keywords

    occupation mobility; technological change; search and matching;
    All these keywords.

    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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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