Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals
We study variation in skill demands for professionals across firms and labor markets. We categorize a wide range of keywords found in job ads into ten general skills. There is substantial variation in these skill requirements, even within narrowly defined occupations. Focusing particularly on cognitive and social skills, we find positive correlations between each skill and external measures of pay and firm performance. We also find evidence of a cognitive social-skill complementarity for both outcomes. As a whole, the job skills have explanatory power in pay and firm performance regressions, beyond what is available in widely-used labor market data.
Previously circulated as "Firm Heterogeneity in Skill Demands." We are grateful to Edward Lazear, Kathryn Shaw, two anonymous referees and seminar participants at AEAs, NBER and the Trans Pacific Labor Seminar 2016. We are especially indebted to Brad Hershbein, Dan Restuccia, Jake Sherman, and Bledi Taska for help and provision of the Burning Glass data. This paper was previously circulated under the title "Firm Heterogeneity in Skill Demands". The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals, David Deming, Lisa B. Kahn. in Firms and the Distribution of Income: The Roles of Productivity and Luck, Lazear and Shaw. 2018
David Deming & Lisa B. Kahn, 2018. "Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals," Journal of Labor Economics, vol 36(S1), pages S337-S369.