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Skill biased technical change: panel evidence of task orientation, wage effects, and labor dynamics

Ross, Matthew (2014): Skill biased technical change: panel evidence of task orientation, wage effects, and labor dynamics.

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Abstract

Existing empirical analyses of Skill Biased Technical Change focus on examining repeated cross-sections of individuals holding occupational task measures fixed. That approach cannot explore how wages respond to temporal variation in task orientation. This analysis examines wage effects using a synthetic panel of occupational task measures constructed from 17 releases of the O*NET database. This synthetic panel is combined with a panel of individual workers. Cross-occupational estimates that control for individual fixed-effects confirm previous empirical findings find a reduced overall magnitude. Fixed-effects estimates reveal that occupational transitions contribute substantially to observed wage effects while task variation within occupations does not.

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