Earnings Dynamics, Changing Job Skills, and STEM Careers*
Abstract
This article studies the impact of changing job skills on career earnings dynamics for college graduates. We measure changes in the skill content of occupations between 2007 and 2019 using detailed job descriptions from a near universe of online job postings. We then develop a simple model where the returns to work experience are a race between on-the-job learning and skill obsolescence. Obsolescence lowers the return to experience, flattening the age-earnings profile in faster-changing careers. We show that the earnings premium for college graduates majoring in technology-intensive subjects such as computer science, engineering, and business declines rapidly, and that these graduates sort out of faster-changing occupations as they gain experience.
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Deming and Noray (2020) document changes in skill demands associated with broader IT-related activity.
“To investigate whether AI exposure predicts skill demands in non-AI jobs, we build on work by Deming and Noray (2020) who document such changes associated with broader IT-related activity.”
From Artificial Intelligence and Jobs: Evidence from Online Vacancies (2022) · cites this paper as Deming and Noray (2020)
Cites
The Skill Content of Recent Technological Change: An Empirical Exploration
Autor, D. H., Levy, F., & Murnane, R. J. (2003) · The Quarterly Journal of Economics · doi:10.1162/003355303322552801 · Cited by 6,205 · see citing works
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 · see citing works
Berman, E., Bound, J., & Griliches, Z. (1994) · The Quarterly Journal of Economics · doi:10.2307/2118467 · Cited by 1,870 · see citing works
The Burden of Knowledge and the “Death of the Renaissance Man”: Is Innovation Getting Harder?
JONES, B. F. (2009) · Review of Economic Studies · doi:10.1111/j.1467-937x.2008.00531.x · Cited by 1,058 · see citing works
Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings
Hershbein, B., & Kahn, L. B. (2018) · American Economic Review · doi:10.1257/aer.20161570 · Cited by 573 · see citing works
Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Altonji, J. G., Bharadwaj, P., & Lange, F. (2012) · Journal of Labor Economics · doi:10.1086/666536 · Cited by 158 · see citing works
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Artificial Intelligence and Jobs: Evidence from Online Vacancies
Acemoglu, D., Autor, D., Hazell, J., & Restrepo, P. (2022) · Journal of Labor Economics · doi:10.1086/718327 · Cited by 1,193 · see citing works
The diffusion of new technologies
Kalyani, A., Bloom, N., Carvalho, M., Hassan, T., Lerner, J., & Tahoun, A. (2025) · The Quarterly Journal of Economics · doi:10.1093/qje/qjaf002 · Cited by 60 · see citing works
The Growing Importance of Decision-Making on the Job
Deming, D. (2021) · doi:10.3386/w28733 · Cited by 52 · see citing works
Self-citationFuture of professional work: evidence from legal jobs in Britain and the United States
Sako, M., Qian, M., & Attolini, J. (2022) · Journal of Professions and Organization · doi:10.1093/jpo/joac011 · Cited by 19 · see citing works
- Authors
- Deming, D. J., & Noray, K.
- Affiliations
- Harvard University and National Bureau of Economic Research
- Harvard University
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 2020-06-16
- Volume
- 135
- Issue
- 4
- Pages
- 1965-2005
- ISSN
- 0033-5533
- 1531-4650
- Cited by
- 335
- References
- 6
- Language
- en
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