The innovation premium to soft skills in low-skilled occupations

Aghion, Philippe ORCID: 0000-0002-9019-1677, Bergeaud, Antonin Jean Jacob, Blundell, Richard and Griffith, Rachel (2019) The innovation premium to soft skills in low-skilled occupations. CEP Discussion Papers (CEPDP1665). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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 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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2019 The Author(s)
Divisions:	Economics Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
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:	11 Mar 2024 12:27
URI:	http://eprints.lse.ac.uk/id/eprint/103452

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