Skill Accumulation and Occupational Mobility

In this paper, I develop a dynamic model of occupational mobility in which an interaction of multiple general skills in skill accumulation is introduced. I investigate workers’ motivation to exploit this interaction and how the motivation generates occupational mobility. The results of a structural estimation indicate that the theoretical model is able to replicate a set of empirical patterns of occupational mobility and wage growth. Of particular note is the model’s capability to replicate a novel empirical finding that a majority of workers congregate into occupations requiring relatively balanced skills as they age.