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The Wage Distribution in a Model of the Assignment of Skills to Jobs
Abstract
This paper discusses a general equilibrium model of the assignment of heterogeneous workers to heterogeneous jobs. Both jobs and workers are measured along a continuous one-dimensional scale. The composition of labor supply is represented by a distribution function. Workers maximize their earnings. Highly skilled workers have an absolute advantage in all jobs and a comparative advantage in complex jobs. Utility is represented by a constant elasticity of substitution function defined over the output of an infinite number of jobs. Equilibrium is characterized by a mapping of skills on complexities. The model is able simultaneously to explain the remuneration of skill, the allocation of skills to jobs, and variations in labor demand per job type. Estimation results for the Netherlands for 1982 and 1988 offer support for its relevance. Wage differentials are due mainly to skill differentials in the left tail of the distribution and to differences between jobs in the right tail.
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Citations
Cites
Changes in Relative Wages, 1963-1987: Supply and Demand Factors
Katz, L. F., & Murphy, K. M. (1992) · The Quarterly Journal of Economics · doi:10.2307/2118323 · Cited by 4,793
Shadow Prices, Market Wages, and Labor Supply
Heckman, J. (1974) · Econometrica · doi:10.2307/1913937 · Cited by 1,852
Cited by
Skills, Tasks and Technologies: Implications for Employment and Earnings
Acemoglu, D., & Autor, D. (2011) · Handbook of Labor Economics · doi:10.1016/s0169-7218(11)02410-5 · Cited by 3,799
Skills, Tasks and Technologies: Implications for Employment and Earnings
Acemoglu, D., & Autor, D. (2010) · doi:10.3386/w16082 · Cited by 2,180
Explaining Job Polarization: Routine-Biased Technological Change and Offshoring
Goos, M., Manning, A., & Salomons, A. (2014) · American Economic Review · doi:10.1257/aer.104.8.2509 · Cited by 2,111
Why Has CEO Pay Increased So Much?*
Gabaix, X., & Landier, A. (2008) · Quarterly Journal of Economics · doi:10.1162/qjec.2008.123.1.49 · Cited by 1,764
The Economics and Psychology of Personality Traits
Borghans, L., Duckworth, A. L., Heckman, J. J., & ter Weel, B. (2008) · Journal of Human Resources · doi:10.1353/jhr.2008.0017 · Cited by 1,049
Metadata
- Authors
- Teulings, C. N.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1995-04
- Volume
- 103
- Issue
- 2
- Pages
- 280-315
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W1990932381
- Cited by
- 176
- References
- 2
- FWCI
- 0.00
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
