How General Is Human Capital? A Task‐Based Approach

TLDR

The study investigates the portability of labor‑market skills. The authors use detailed task data to introduce task‑specific human capital as a measure of skill transferability across occupations. The analysis reveals that labor‑market skills are more portable than thought, with workers shifting to similar task profiles and move distance shrinking with experience, and task‑specific human capital accounting for up to 52 % of wage growth.

Abstract

This article studies how portable skills accumulated in the labor market are. Using rich data on tasks performed in occupations, we propose the concept of task‐specific human capital to measure empirically the transferability of skills across occupations. Our results on occupational mobility and wages show that labor market skills are more portable than previously considered. We find that individuals move to occupations with similar task requirements and that the distance of moves declines with experience. We also show that task‐specific human capital is an important source of individual wage growth, accounting for up to 52% of overall wage growth.