TY - JOUR
T1 - The Assignment of Workers to Tasks with Endogenous Supply of Skills.
AU - Dupuy, Arnaud
PY - 2015/1/1
Y1 - 2015/1/1
N2 - This paper presents a general equilibrium assignment model of workers to tasks with endogenous supply of skills. In the model, skills are endogenous and multidimensional, and two types of assignment occur: workers self-select the type of skills to supply, and firms assign workers to tasks. The model shows that the impact of any skill-biased technical change on wage inequality is tightly related to the distribution of skills in the population. When the supply of skills is endogenous, productivity effects can be overestimated or underestimated by wage data, and Johnson's (1996) distinction between intensive and extensive technical change is impossible.
AB - This paper presents a general equilibrium assignment model of workers to tasks with endogenous supply of skills. In the model, skills are endogenous and multidimensional, and two types of assignment occur: workers self-select the type of skills to supply, and firms assign workers to tasks. The model shows that the impact of any skill-biased technical change on wage inequality is tightly related to the distribution of skills in the population. When the supply of skills is endogenous, productivity effects can be overestimated or underestimated by wage data, and Johnson's (1996) distinction between intensive and extensive technical change is impossible.
KW - Endogenous supply of skills
KW - Human capital
KW - Multidimensional skills
KW - Tasks assignment
KW - Technical change
U2 - https://doi.org/10.1111/ecca.12071
DO - https://doi.org/10.1111/ecca.12071
M3 - Article
SN - 0013-0427
VL - 82
SP - 24
EP - 25
JO - Economica
JF - Economica
IS - 325
ER -