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Demand for Skills and Wage Inequality.

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Title: Demand for Skills and Wage Inequality.
Authors: Grasso, Giuseppe1 (AUTHOR) giuseppegrasso.econ@gmail.com, Tatsiramos, Konstantinos2,3 (AUTHOR)
Source: LABOUR: Review of Labour Economics & Industrial Relations. Jul2026, p1. 19p. 5 Illustrations.
Subject Terms: *Skilled labor supply & demand, *Wage differentials, *Income inequality, *Labor market, Cognitive ability, Social skills, Heterogeneity
Abstract: ABSTRACT We study the relationship between skill demand and wage inequality, and its association with worker and firm heterogeneity, across province‐by‐sector‐by‐occupation labor market cells. Combining Italian linked employer–employee data with aggregate skill requirements from online vacancies, we find a strong positive relationship between wages and demand for cognitive and social skills, especially when jointly required, highlighting their complementarity. When both skills are demanded more, higher wages are driven by AKM worker effects—reflecting the higher market value of a hybrid skill set—rather than firm pay, whereas higher specialized skill demand is associated with larger firm premiums but lower market‐level valuations. [ABSTRACT FROM AUTHOR]
Copyright of LABOUR: Review of Labour Economics & Industrial Relations is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Label: Title
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  Data: Demand for Skills and Wage Inequality.
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  Data: <searchLink fieldCode="AR" term="%22Grasso%2C+Giuseppe%22">Grasso, Giuseppe</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> giuseppegrasso.econ@gmail.com</i><br /><searchLink fieldCode="AR" term="%22Tatsiramos%2C+Konstantinos%22">Tatsiramos, Konstantinos</searchLink><relatesTo>2,3</relatesTo> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22LABOUR%3A+Review+of+Labour+Economics+%26+Industrial+Relations%22">LABOUR: Review of Labour Economics & Industrial Relations</searchLink>. Jul2026, p1. 19p. 5 Illustrations.
– Name: Subject
  Label: Subject Terms
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  Data: *<searchLink fieldCode="DE" term="%22Skilled+labor+supply+%26+demand%22">Skilled labor supply & demand</searchLink><br />*<searchLink fieldCode="DE" term="%22Wage+differentials%22">Wage differentials</searchLink><br />*<searchLink fieldCode="DE" term="%22Income+inequality%22">Income inequality</searchLink><br />*<searchLink fieldCode="DE" term="%22Labor+market%22">Labor market</searchLink><br /><searchLink fieldCode="DE" term="%22Cognitive+ability%22">Cognitive ability</searchLink><br /><searchLink fieldCode="DE" term="%22Social+skills%22">Social skills</searchLink><br /><searchLink fieldCode="DE" term="%22Heterogeneity%22">Heterogeneity</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: ABSTRACT We study the relationship between skill demand and wage inequality, and its association with worker and firm heterogeneity, across province‐by‐sector‐by‐occupation labor market cells. Combining Italian linked employer–employee data with aggregate skill requirements from online vacancies, we find a strong positive relationship between wages and demand for cognitive and social skills, especially when jointly required, highlighting their complementarity. When both skills are demanded more, higher wages are driven by AKM worker effects—reflecting the higher market value of a hybrid skill set—rather than firm pay, whereas higher specialized skill demand is associated with larger firm premiums but lower market‐level valuations. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of LABOUR: Review of Labour Economics & Industrial Relations is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.1111/labr.70023
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 19
        StartPage: 1
    Subjects:
      – SubjectFull: Skilled labor supply & demand
        Type: general
      – SubjectFull: Wage differentials
        Type: general
      – SubjectFull: Income inequality
        Type: general
      – SubjectFull: Labor market
        Type: general
      – SubjectFull: Cognitive ability
        Type: general
      – SubjectFull: Social skills
        Type: general
      – SubjectFull: Heterogeneity
        Type: general
    Titles:
      – TitleFull: Demand for Skills and Wage Inequality.
        Type: main
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      – PersonEntity:
          Name:
            NameFull: Grasso, Giuseppe
      – PersonEntity:
          Name:
            NameFull: Tatsiramos, Konstantinos
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          Dates:
            – D: 03
              M: 07
              Text: Jul2026
              Type: published
              Y: 2026
          Identifiers:
            – Type: issn-print
              Value: 11217081
          Titles:
            – TitleFull: LABOUR: Review of Labour Economics & Industrial Relations
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