Arbeitspapier

Skills, Tasks, and Complexity

We introduce a new task-based framework to describe production. It focuses on the fact that certain tasks are too complex for many workers to perform. In such an environment, the relationship between wages of workers may significantly differ from their relative productivities. The labor market partitions itself into submarkets, in which wages and productivity are aligned, and high-skilled workers may obtain wage premia above their productivity level. The framework offers a variety of applications. For instance, the automation of low-complexity tasks tends to reinforce labor market segmentation. Moreover, comparatively small changes in a task's complexity, via new products, processes or automation, may have either a negligible or a large impact on wage inequality.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12770

Classification
Wirtschaft
Innovation and Invention: Processes and Incentives
Technological Change: Government Policy
Subject
skill
technological change
tasks
complexity

Event
Geistige Schöpfung
(who)
Gersbach, Hans
Schmassmann, Samuel
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2019

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Gersbach, Hans
  • Schmassmann, Samuel
  • Institute of Labor Economics (IZA)

Time of origin

  • 2019

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