Papers

Skill Mismatch with Worker-side Learning Heterogeneity

Abstract: Do interpersonal and cognitive skills adjust to skill mismatch? Recent papers have looked into the different characteristics of mismatch in skills. For example, Lise and Postel-Vinay (2020) find that cognitive skills adjust slowly and interpersonal skills are fixed over a lifetime. However, they and most of the literature simulate the on-the-job learning process. So, this paper revisits these results using Natural Language Processing to incorporate unique data on the heterogeneity of learning within the same occupation. I find that interpersonal skills do adjust to skill mismatch, albeit slowly.