On Simplifying the Structure of Labour Demand: An Analysis of the Dot Data

24 Pages Posted: 7 Nov 2005

See all articles by Wim P.M. Vijverberg

Wim P.M. Vijverberg

CUNY The Graduate Center - Department of Economics; IZA Institute of Labor Economics

Joop Hartog

University of Amsterdam - Faculty of Economics and Business (FEB); Tinbergen Institute; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Date Written: October 2005

Abstract

We analyse the information in the Dictionary of Occupational Titles to characterize the structure of labour demand. Two dimensions, an intellectual factor and a dexterity factor capture most variation in job requirements. Job complexity in relation to Things correlates highly with the dexterity factor. Complexity in relation to Data is intricately interwoven with most other dimensions of jobs. Remarkably, while complexity in relation to Data and to Things associates with extensive training, this does not hold for complexity in relation to People. There is no dichotomy between mathematical and verbal required skills. Poor working conditions are not the exclusive prerogative for workers in low level jobs. This independence provides a good setting for testing the theory of compensating wage differentials and indeed we find a good deal of support.

Keywords: labor demand structure, job requirements, compensating differentials

JEL Classification: J21, J23, J31

Suggested Citation

Vijverberg, Wim and Hartog, Joop, On Simplifying the Structure of Labour Demand: An Analysis of the Dot Data (October 2005). IZA Discussion Paper No. 1809. Available at SSRN: https://ssrn.com/abstract=840645

Wim Vijverberg

CUNY The Graduate Center - Department of Economics ( email )

365 Fifth Avenue, 5th Floor
New York, NY 10016
United States
212-817-8262 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Joop Hartog (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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