Occupational Mobility, Occupation Distance and Basic Skills: Evidence from Job-Based Skill Measures

In this paper a basic skill vector characterization of occupations is used to examine the relation between human capital specificity and occupational mobility. Specifically, the paper asks, how much occupational mobility is simply moving a given skill or task set around different occupations that use the same skill set, and how much involves major shifts in the skill vectors? The loss of specific human capital is most likely to occur in cases where the skill or task vectors are different. It also contrasts the relation between basic skill or task mobility relative to 3-digit occupation mobility in total mobility, as recorded in the March Current Population Surveys, with the same relationship in involuntary mobility, as reflected in the Displaced Worker Survey. Total mobility includes voluntary mobility that includes moves to higher job offers using the same skills, as well as promotions that may reflect augmented skills. In each case these will not be sources of specific capital loss. By contrast, the involuntary mobility due to plant closure is likely to involve a higher incidence of loss of specific capital. The evidence suggests that a decreasing fraction of occupation switches involve significant skill portfolio switches. This is particularly true for involuntary mobility. The direction of the move in total mobility shows a small upward pattern. By contrast, there is a marked downward pattern for involuntary occupation switchers.