NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Satoshi Tanaka

Level 6 Colin Clark Building, Blair Dr.
University of Queensland
QLD4072, Australia

E-Mail: s.tanaka@uq.edu.au

NBER Working Papers and Publications

July 2015Multidimensional Skill Mismatch
with Fatih Guvenen, Burhanettin Kuruscu, David Wiczer: 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...
 
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