Cookies?
Library Header Image
LSE Research Online LSE Library Services

The innovation premium to soft skills in low-skilled occupations

Aghion, Philippe, Bergeaud, Antonin, Blundell, Richard and Griffith, Rachel (2019) The innovation premium to soft skills in low-skilled occupations. CEP Discussion Papers. Centre for Economic Performance, LSE, London, UK.

[img] Text (dp1665) - Published Version
Download (1MB)

Abstract

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 highskilled 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.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2019 The Authors
Divisions: Economics
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HB Economic Theory
JEL classification: O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited: 17 Feb 2020 13:03
Last Modified: 12 Sep 2020 23:16
URI: http://eprints.lse.ac.uk/id/eprint/103452

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics