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The Innovation Premium to Soft Skills in Low-Skilled Occupations
Matched employee-employer data from the UK are used to analyze the wage premium to working in an innovative firm. We find that firms that are more R&D intensive pay higher wages on average, and this is particularly true for workers in some low-skilled occupations. We propose a model in which a firm’s innovativeness is reflected in the degree of complementarity between workers in low-skill and high-skilled occupations, and in which non-verifiable soft skills are an important determinant of the wages of workers in low-skilled occupations. The model yields additional predictions on training, tenure and outsourcing which we also find support for in data.
Please sign up for meetings here: docs.google.com/spreadsheets/d/1Ua4SH_A-6Niek7ORFzk-ZZkj1FdvWsHo0KLXArnca2Q/edit#gid=0
Link to paper: personalpages.manchester.ac.uk/staff/rachel.griffith/pdf/workinprogress/ABBG_CEPR_version.pdf
Date:
4 February 2020, 12:45
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room A
Speaker:
Rachel Griffith (Manchester and IFS)
Organising department:
Department of Economics
Part of:
Applied Microeconomics Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Melis Clark
