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Skill demand versus skill use: Comparing job posts with individual skill use on the job

Year: 2024

Type: article

Abstract: Skill requirements in a job post reflect an employer’s “wish list,” but do they also reflect skills used on the job by the hired worker? We compare skill measures derived from the text of online job posts with individual-level data from the Danish Labour Force Survey (LFS) in which participants report their main skills used on the job as free text. By identifying individual workers from the LFS who can be matched to a job post, we validate that the extensive margin skills measures derived from job postings data reflect main skills used on the job. Thus, using job postings data to analyze skill use on the job is generally a valid empirical strategy. However, we also show that heterogeneity in returns to skills is missed if only the extensive margin of skill demand is considered.

Source: Labour Economics

DOI: 10.1016/j.labeco.2024.102661

Authors: Moira Daly, Fane Groes, Mathias Fjællegaard Jensen

Institution: Copenhagen Business School

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,780