Working Paper Series
Firms and Skills: The Evolution of Worker Sorting
(), Erik Lindqvist
() and Jonas Vlachos
Abstract: We document a significant increase in the sorting of
workers by cognitive and non-cognitive skills across Swedish firms between
1986 and 2008. The weight of the evidence suggests that the increase in
sorting is due to stronger complementarities between worker skills and
technology. In particular, a large fraction of the increase can be
explained by the expansion of the ICT sector and a reallocation of
engineers across firms. We also find evidence of increasing assortative
matching, in the sense that workers who are particularly skilled in their
respective educational groups are more likely to work in the same firms.
Changes in sorting patterns and skill gradients can account for a about
half of the increase in between-firm wage dispersion.
Keywords: Skill sorting; Skilled-biased technological change; Outsourcing; Globalization; Cognitive skills; Non-cognitive skills; Personality; Employer-employee matched data; (follow links to similar papers)
JEL-Codes: J24; J62; L21; O33; (follow links to similar papers)
81 pages, June 4, 2015
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