English

When Does it Pay Off to Learn a New Skill? Revealing the Complementary Benefit of Cross-Skilling

General Economics 2021-02-11 v4 Social and Information Networks Economics Applications

Abstract

This work examines the economic benefits of learning a new skill from a different domain: cross-skilling. To assess this, a network of skills from the job profiles of 14,790 online freelancers is constructed. Based on this skill network, relationships between 3,480 different skills are revealed and marginal effects of learning a new skill can be calculated via workers' wages. The results indicate that learning in-demand skills, such as popular programming languages, is beneficial in general, and that diverse skill sets tend to be profitable, too. However, the economic benefit of a new skill is individual, as it complements the existing skill bundle of each worker. As technological and social transformation is reshuffling jobs' task profiles at a fast pace, the findings of this study help to clarify skill sets required for designing individual re-skilling pathways. This can help to increase employability and reduce labour market shortages.

Keywords

Cite

@article{arxiv.2010.11841,
  title  = {When Does it Pay Off to Learn a New Skill? Revealing the Complementary Benefit of Cross-Skilling},
  author = {Fabian Stephany},
  journal= {arXiv preprint arXiv:2010.11841},
  year   = {2021}
}

Comments

25 pages, 8 figures, 2 tables