Sorting of Skill over Time: Evidence from Sweden 1986-2008?
Leibniz Seminar für Arbeitsmarktforschung (BeNA)
Abstract: A theoretical literature argues that technological change and globalization increase the sorting of workers by skill to firms. However, empirical studies on sorting have been constrained by a lack of measures of skill that are comparable over time. In this paper, we match information on cognitive and non-cognitive skills from the military enlistment for 25 cohorts of Swedish men with employer-employee data. Since the military enlistment takes place at age 18, our skill measures are unaffected by changes in the demand or supply of higher education and labor market conditions in general.