Upskilling: Do Employers Demand Greater Skill When Workers Are Plentiful?

Alicia Modestino · Daniel Shoag · Joshua Balance

162 citations0/0 files storedThe Review of Economics and Statistics

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Labor market dynamics and wage inequality Education and Labor Relations Names, Identity, and Discrimination Research

Abstract

Using a proprietary database of online job postings, we find that education and experience requirements rose during the Great Recession. These increases were larger in states and occupations that experienced greater increases in the supply of available workers. This finding is robust to controlling for local demand conditions and firm [Formula: see text] job-title fixed effects and using a natural experiment arising from troop withdrawals as an exogenous shock to labor supply. Our results imply that the increase in unemployed workers during the Great Recession can account for 18% to 25% of the increase in skill requirements between 2007 and 2010.

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References

1992Changes in Relative Wages, 1963-1987: Supply and Demand Factors 2013The China Syndrome: Local Labor Market Effects of Import Competition in the United States 1994Job Creation and Job Destruction in the Theory of Unemployment 2013The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market 2008Trends in U.S. Wage Inequality: Revising the Revisionists 2007Lousy and Lovely Jobs: The Rising Polarization of Work in Britain 2010The Geographic Determinants of Housing Supply *2012The Short- and Long-Term Career Effects of Graduating in a Recession

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