David G. Wiczer
Federal Reserve Bank of St. Louis
P.O. Box 442
St. Louis, MO 63166
NBER Working Papers and Publications
|July 2015||Multidimensional Skill Mismatch|
with Fatih Guvenen, Burhanettin Kuruscu, Satoshi Tanaka: w21376
What determines the earnings of a worker relative to his peers in the same occupation? What makes a worker fail in one occupation but succeed in another? More broadly, what are the factors that determine the productivity of a worker-occupation match? In this paper, we propose an empirical measure of skill mismatch for a worker-occupation match, which sheds light on these questions. This measure is based on the discrepancy between the portfolio of skills required by an occupation (for performing the tasks that produce output) and the portfolio of abilities possessed by a worker for learning those skills. This measure arises naturally in a dynamic model of occupational choice with multidimensional skills and Bayesian learning about one's ability to learn these skills. In this model, mismatch...