impacts of the minimum wage on skill requirements - ifs cep ifs.pdf · impacts of the minimum wage...

Intro Data Skill Requirements and MW Hikes Conclusion

Impacts of the Minimum Wage on SkillRequirements

Evidence from job postings

Je�rey Clemens, UCSD & NBERLisa B. Kahn, Yale & NBER

Jonathan Meer, Texas A&M & NBER

October, 2017


Distributional consequences of the minimum wage?

• Recent wave of local and statutory min wage hikes• ��ght for $15�• federal at $7.25 since 2009

• Generally modest overall employment e�ects of min wage hikes(a la Card and Krueger)

• tho less clear for recent out-of-sample changes

• Should be other margins of adjustment before extensiveemployment e�ects

• Labor-labor substitution may generate distributional impacts• High and low-skilled labor may be production substitutes• Movement along labor supply curve of skilled workers


This Paper

• Do skill requirements increase following a minimum wage law?

• Data on nearly all jobs posted to an online source from2010-2016

• Gives a ��rst response�• Accurately de�ne �prone� jobs• Explore dynamics within and across employers• Validate with ACS employment data

• Exploit recent wave of statutory minimum wage increases

• Gets at a margin of adjustment that might occur beforeemployment cuts

• non-pecuniary bene�ts (Clemens, Kahn, Meer 2017b)


The Minimum Wage

010

2030

Num

ber

of s

tate

s$3.0

0$6

.00

$9.0

0

Nom

inal

Min

imum

Wag

e

1980 1990 2000 2010

Ave super-federal state min wageFederal min wageNumber of states mandating super-federal


Previous Literature

• Large older literature on employment e�ects (a la Card andKrueger, Neumark and Wascher)

• Large e�ects from recent federal minimum wage hikes amonglow-skilled workers (Clemens and Wither 2016, Clemens 2016)

• Employment dynamics: hiring margin more likely a�ected(Meer and West 2016)

• Firm dynamics: putty-clay/capital-labor substitution (Sorkin2015, Aaronson, French, Sorkin, To 2016)


Previous Literature

• Long conceptual history of labor-labor substitution

• Little recent empirical work• Hamermesh & Grant (1979, 1980), Borjas (1983), etc.• Demographics of employed workers (Neurmark & Wascher1996, Dube, Lester, and Reich 2010, Fairris and Bujunda 2008)

• Giuliano (2013):increased labor supply for more productiveteens at a large retailer

• Horton (2017): employers switch to more productive workersin online platform

• Aaronson and Phelan (2017): shift from cog routine tonon-cognitive employment

• These papers are limited by �ow/stock issues and generalmeasurement problems, and typically in specialized settings

• we can more accurately de�ne bite• provide ��rst response� on the part of �rms• lots of potential to study �rm dynamics (e.g., spillovers andother substitution)


This Paper

• De�ne �prone� occupations based on OES wage data

• Rich dataset allows us to exploit double and triple di�erencesspeci�cations

• We �nd very robust increases in propensity to ask for a highschool diploma

• 2 percentage points (10%) per $0.70-$3.25 min wage increase• holds up to detailed controls, including at the �rm-level• no impacts on other skills

• Accompanied by increases in skill of employed workers


Data and Methods


Job Vacancy Data from Burning Glass

• Scrapes vacancy postings from 40k sites - near universalcoverage of electronic vacancies

• de-duplication algorithm• Captures over 70 �elds• Microdata �rst used by Hershbein and Kahn (2016) to studywhether �rms concentrated technological adoption in theGreat Recession

• Representativeness

• Online vacancies cover ~60-80 percent of all vacancies, higherin high-skilled jobs

• Relative to JOLTS

• Representativeness changes little over our sample period


Skill Requirements in Burning Glass

• education (HS, AA, BA, MA, Prof)• Education requirements align well with employed workersacross Occupations and MSAs

• experience (yrs in the �eld)

• Deming and Kahn (2017): categorize regularized key wordsinto job skills

• noncognitive: �organized�, �detail-oriented�, �multi-tasking�,�time management�, �meeting deadlines�, �energetic�

• social: �communication�, �teamwork�, �collaboration�,�negotiation�, �presentation�

• (plus 8 others that seem less relevant)


�Prone� Occupations

• Prone if 10th %ile wage in the 4-digit SOC occupation is inthe bottom decile across all occupations

• based on Occupational Employment Statistics (OES) data2006

• lines up along sensible occupation lines

• Group remaining occupations into deciles 2-5 and 6-10


�Prone� Occupations

prone: cooks, food prep, bartenders, baristas, waiters, hostesses, dishwashersnot prone: chefs, head cooks, first‐line supervisors

prone: janitors, cleaners, maids, building cleaning, pest controlnot prone: first‐line supervisors, landscapers, pesticide handlers, tree trimmers

prone: animal caretakers/trainers, entertainment attendants, hairdresses/barbers/manicurists, baggage porters/concierges, childcare fitness

not prone: gaming supervisors, first‐line, spa managers, funeral related, tour/travel guidsprone: cashiers, clerks, parts, retail

not prone: first‐line, agents (advertising, insurance, travel), traders, sales reps, real estate brokers, telemarketers, door‐to‐door

prone: Agricultural workersnot prone: first‐line, fishers, hunters, forest and conservation, logging,

Sales

Farming, Fishing, Forestry

Prone occupations = 10th %ile of wage distribution is among the bottom decile of occupations (OES data)Food Prep and

ServingCleaning and Maintenance

Personal Care Services


Share of ads that are �Prone�, by Industry11 Agriculture 6%

21 Mining 8%

22 Utilities 2%

23 Construction 3%

30 Manufacturing 2%

42 Wholesale Trade 8%

44 Retail Trade 34%

48 Trans, Ware & Util 1%

51 Information 13%

52 Finance & Insurance 2%

53 Real Estate 6%

54 Prof & Sci 3%

55 Managing Co's 6%

56 Admin and Waste 7%

61 Education 4%

62 Health & Soc Assist 5%

71 Arts, Ent, & Rec 33%

72 Accommod & Food 41%

81 Other Services 13%

92 Public Admin 5%

Total 12%


Summary Statistics

All Prone Deciles 2-5 Deciles 6-10

Occupation Categories:Most Prone Group 0.21 1 0 0

Deciles 2-5 0.41 0 1 0Deciles 6-10 0.38 0 0 1

Education Requirements:Any 0.50 0.32 0.49 0.61HS 0.28 0.28 0.38 0.17BA 0.15 0.03 0.07 0.30

(unweighted)# Ads 70 million 8 million 21 million 41 million# Occupation-State-Date Cells 318,011 35,301 114,308 114,308# Ads Per Cell 219 232 184 241

Occupation Categories:Most Prone Group 0.20 1 0 0

Deciles 2-5 0.41 0 1 0Deciles 6-10 0.39 0 0 1

Characteristics:Less HS 0.09 0.18 0.10 0.03

HS 0.35 0.43 0.45 0.20Age 39.82 34.12 40.33 42.22

Young Adult 0.09 0.25 0.08 0.02

Occupation Categories

Burning Glass Ads

Employed (ACS)


State Minimum Wage Changes 2010-2016Large Statutory Change:

Alaska

California

DC

Massachusetts

Minnesota

Nebraska

New York

Rhode Island

West Virginia

Small Statutory Change:

Arkansas

Connecticut

Delaware

Hawaii

Maryland

Michigan

New Jersey

Nevada

South Dakota

Vermont

Indexers:

Arizona

Colorado

Florida

Illinois

Missouri

Montana

Ohio

Oregon

Washington

No Change:

Alabama, Georgia, Iowa

Idaho, Indiana, Kansas

Kentucky, Louisiana, Maine

Mississippi, North Carolina

North Dakota, New Hampshire

New Mexico, Oklahoma

Pennsylvania, South Carolina

Tennessee, Texas, Utah

Virginia, Wisconsin, Wyoming

Clemens and Strain

• Indexers have small increases nearly every year (avg $0.20, avg$0.75 over whole time period)

• 1/3 of states with statutory increases have another similarlysized increase roughly a year later

• Most in 2014-2016 (more to come)


State Minimum Wage Changes 2010-2016

State Total Change over time period # increases Date of First Change

DC $3.25 3 2015

MN $2.25 3 2014

AK $2.00 2 2015

CA $2.00 2 2015

MA $2.00 2 2015

NE $1.75 2 2015

NY $1.75 3 2014

RI $1.60 2 2015

WB $1.50 2 2015

CT $1.35 3 2014

SD $1.30 2 2015

HI $1.25 2 2015

NJ $1.13 2 2014

MI $1.10 2 2014

DE $1.00 2 2014

MD $1.00 2 2015

VT $0.87 2 2015

AR $0.75 2 2015

NV $0.70 1 2011

Satutory Minimum Wage Increases 2010‐2016


Summary Statistics � non-missing �rm

Statutory Increaser Indexer No ChangeAd Share 0.37 0.24 0.39

Prone Group:Most Prone 0.21 0.21 0.21

Dec 2-5 0.40 0.40 0.42Dec 6-9 0.39 0.38 0.38

HS Diploma Requirement 0.26 0.29 0.29Starting Minimum Wage 7.61 7.57 7.26Ending Minimum Wage 9.28 8.27 7.26

(unweighted)# Ads 26 million 17 million 27 million# Occupation-State-Date Cells 111,521 62,704 143,786# Ads Per Cell 234 268 187

State Group


Skill Requirements and Min Wage Changes


High School Diploma (BG)

ALGAIAIDIN

KSKYLAME

MS

NC

NDNHNM

OKPASCTNTXUTVA

WI

WY AZCO

FLILMO

MT

OHOR

WA

AR CTDE

HI

MDMINJNV SDVT

AK

CA DCMA

MN

NE

NY

RI

WV

-.1-.0

50

.05

.1.1

5

0 1 2 3

High Bite Occupations -- HS

ALGAIA

ID

INKS

KY

LA

ME

MSNC

NDNHNM

OKPASCTNTX

UT

VA

WI

WY

AZ

COFLIL MO

MTOHORWA

AR

CTDE

HIMD

MINJ

NV

SD

VT AKCA DCMA

MNNENY

RIWV

-.1-.0

50

.05

.1.1

5

0 1 2 3

Modest Bite Occupations -- HS

ALGAIA

ID

INKSKYLAMEMSNCNDNHNMOKPASCTNTXUTVAWIWY

AZ COFLIL

MOMTOHORWAAR CTDE HI

MDMINJNV SD

VTAKCA DCMA MNNE

NYRIWV

-.1-.0

50

.05

.1.1

5

0 1 2 3

Low Bite Occupations -- HS

Skill

Req

uire

men

t Cha

nge

Minimum Wage Change


High School Diploma (BG)

ALGAIAIDIN

KSKYLAME

MS

NC

NDNHNM

OKPASCTNTXUTVA

WI

WY AZCO

FLILMO

MT

OHOR

WA

AR CTDE

HI

MDMINJNV SDVT

AK

CA DCMA

MN

NE

NY

RI

WV

-.1-.0

50

.05

.1.1

5

0 1 2 3

High Bite Occupations -- HS

ALGAIA

ID

INKS

KY

LA

ME

MSNC

NDNHNM

OKPASCTNTX

UT

VA

WI

WY

AZ

COFLIL MO

MTOHORWA

AR

CTDE

HIMD

MINJ

NV

SD

VT AKCA DCMA

MNNENY

RIWV

-.1-.0

50

.05

.1.1

5

0 1 2 3

Modest Bite Occupations -- HS

ALGAIA

ID

INKSKYLAMEMSNCNDNHNMOKPASCTNTXUTVAWIWY

AZ COFLIL

MOMTOHORWAAR CTDE HI

MDMINJNV SD

VTAKCA DCMA MNNE

NYRIWV

-.1-.0

50

.05

.1.1

5

0 1 2 3

Low Bite Occupations -- HS

ALGAIAIDINKSKYLA

ME

MSNCNDNHNMOKPASCTNTXUTVAWIWY

AZCOFLIL

MOMTOHORWAAR CT

DE HIMD

MINJ

NV SDVT

AKCA

DCMA MNNE

NY

RIWV-.1

-.05

0.0

5.1

.15

0 1 2 3

Low Bite Occupations -- BA

Skill

Req

uire

men

t Cha

nge

Minimum Wage Change


Methodology � Di�-n-Di�

skillost = α0+[afterst ∗mw_groups ]α1+I o+I s+I t+controls+εost

• o = 4digit SOC, t = monthly , s = state

• Estimate separate regressions by Bite group

• mw_groups= indicators for: statutory change, indexer,(omitted) no change

• Experiment with di�erent �xed e�ects/controls

• Weight by employment in state-occupation• restrict to cells with at least 10 ads

• Cluster standard errors by state


DD High School Requirement

(1) (2) (3) (4)

After*Statutory 0.00764 0.0210*** 0.0206*** 0.0151**(0.00739) (0.00701) (0.00688) (0.00616)

After*Indexer -0.00735 -0.00848 -0.00805 -0.00420(0.00895) (0.0106) (0.0109) (0.0125)

Occ-state-date cells 35,295 35,295 35,276 35,276

State, Occ, Date FEs X X X X

Macro/ACA Controls X X X

Occ-by-Date, Occ-by-State X X

Region-by-Date X

Dependent Variable: HS Requirement

High Bite Occupations

*** p<0.01, ** p<0.05, * p<0.1



(1) (2) (3) (4) (1) (2) (3) (4)

After*Statutory 0.00964 0.00799 0.00602 0.00154 -0.00223 -0.000150 -0.000444 0.000939(0.00651) (0.00636) (0.00634) (0.00746) (0.00357) (0.00266) (0.00290) (0.00283)

After*Indexer -0.0122* -0.0142* -0.0124* -0.00744 -0.0106*** -0.0104** -0.0110*** -0.0118***(0.00681) (0.00709) (0.00732) (0.0106) (0.00361) (0.00400) (0.00403) (0.00429)

Occ-state-date cells 114,305 114,305 114,173 114,173 168,386 168,386 168,317 168,317

State, Occ, Date FEs X X X X X X X X

Macro/ACA Controls X X X X X X

Occ-by-Date, Occ-by-State X X X X

Region-by-Date X X*** p<0.01, ** p<0.05, * p<0.1


Modest Bite Occupations Low Bite Occupations



(1) (2) (3) (4) (1) (2) (3) (4)

After*Statutory 0.00964 0.00799 0.00602 0.00154 -0.00223 -0.000150 -0.000444 0.000939(0.00651) (0.00636) (0.00634) (0.00746) (0.00357) (0.00266) (0.00290) (0.00283)

After*Indexer -0.0122* -0.0142* -0.0124* -0.00744 -0.0106*** -0.0104** -0.0110*** -0.0118***(0.00681) (0.00709) (0.00732) (0.0106) (0.00361) (0.00400) (0.00403) (0.00429)

Occ-state-date cells 114,305 114,305 114,173 114,173 168,386 168,386 168,317 168,317

0.00442 0.00661 0.00596 0.00116(0.00473) (0.00487) (0.00519) (0.00387)

-0.0136*** -0.0137*** -0.0129*** -0.00864**(0.00329) (0.00349) (0.00330) (0.00364)

168,386 168,386 168,317 168,317

State, Occ, Date FEs X X X X X X X X

Macro/ACA Controls X X X X X X

Occ-by-Date, Occ-by-State X X X X

Region-by-Date X X*** p<0.01, ** p<0.05, * p<0.1

Low Bite Occupations -- BA Requirement

Dependent Variable: Skill Requirement

Modest Bite Occupations Low Bite Occupations -- HS Requirement


Methodology � Triple Di�

skillost = α0+[afterst∗proneo∗mw_groups ]α1+I ot+I os+I st+controls+εost

• proneo = indicators for Bite group: high, modest, (omitted)low

• mw_groups= indicators for: statutory change, indexer,(omitted) no change

• include standard two-way interactions

• Experiment with di�erent �xed e�ects/controls

• Weight by employment in state-occupation• restrict to cells with at least 10 ads

• Cluster standard errors by state


DDD High School Requirement

(1) (2) (4) (5)

High Bite*After*Statutory 0.0163** 0.0167* 0.0210*** 0.0142**(0.00698) (0.00842) (0.00762) (0.00606)

High Bite*After*Indexer 0.0111 0.0102 0.00340 0.00819(0.00758) (0.00700) (0.00857) (0.00903)

Modest Bite*After*Statutory 0.0119*** 0.0151*** 0.00644 0.000733(0.00372) (0.00404) (0.00505) (0.00517)

Modest Bite*After*Indexer -0.00508 -0.00244 -0.00176 0.00376(0.00434) (0.00527) (0.00412) (0.00623)

Occ-state-date cells 317,986 317,986 317,766 317,766

Group two-ways X X X X

Macro/ACA Controls X X X

Full two-ways X X

Region-by-Bite Group-by-Date X


High School Requirement

*** p<0.01, ** p<0.05, * p<0.1


By Minimum Wage Change

-.02

0.0

2.0

4C

oeffi

cien

t

0 .5 1 1.5 2Average Min Wage Change

Diff-in-Diff Triple Diff



By Bite Group

-.02

-.01

0.0

1.0

2.0

3C

oeffi

cien

t

1 2 3 4 5 6 7 8 9 10Decile of Occupation's 10th Percentile Wage


High School Requirement by Bite Group


By Bite Group

-.02

0.0

2.0

4.0

6C

oeffi

cien

t

1 3 5 7 9 11 13 15 17 19Decile of Occupation's 10th Percentile Wage


High School Requirement by Bite Group


Event

-.04

-.02

0.0

2.0

4.0

6C

oeffi

cien

t

-10 -5 0 5 10Months since first increase


High School Requirement Event Study


Other BG Outcomes

Dependent variable: BA Exp 0-2 Yrs Exp 3+ Yrs Character SocialMean: (0.15) (0.25) (0.19) (0.26) (0.34)

(1) (2) (3) (4) (5)

After*Statutory 0.000390 0.00203 -0.000542 -0.00191 -0.00652(0.00158) (0.00764) (0.00168) (0.00465) (0.00493)

High Bite*After*Statutory -0.00516 0.00552 -0.00309 -0.00496 -0.0102***(0.00492) (0.00695) (0.00323) (0.00507) (0.00356)

*** p<0.01, ** p<0.05, * p<0.1

Diff-in-Diff High Bite

Triple Diff


DD Firm Controls

(1) (2) (3) (4) (5)

After*Statutory 0.0200** 0.0280*** 0.0125*** 0.0141*** 0.0100**(0.00776) (0.00880) (0.00462) (0.00503) (0.00397)

After*Indexer -0.0124 -0.0151 -0.00864* -0.00697 -0.00692(0.0104) (0.00910) (0.00457) (0.00519) (0.00414)

# Cells 44,460 41,722 804,737 803,995 803,950

Full Controls X X X X X

500 Largest Firms X X X X

Firm Fixed Effects X X X

Firm-by-State X X

Firm-by-Year X

Diff n Diff


*** p<0.01, ** p<0.05, * p<0.1


DDD Firm Controls

(1) (2) (3) (4) (5)

After*Statutory*High Bite 0.0218*** 0.0239** 0.0117** 0.00783* 0.0118**(0.00814) (0.0113) (0.00521) (0.00452) (0.00479)

High Bite*After*Indexer 0.00250 -0.00253 -0.00155 -0.00781 -0.00269(0.00755) (0.0105) (0.00661) (0.00572) (0.00529)

Modest Bite*After*Statutory 0.00659 0.0108 0.0129** 0.00844** 0.0119***(0.00449) (0.00806) (0.00537) (0.00409) (0.00408)

Modest Bite*After*Indexer 0.000350 0.00668 0.000989 -0.00281 0.00285(0.00507) (0.00962) (0.00699) (0.00536) (0.00554)

# Cells 401,743 316,709 3,682,415 3,682,121 3,682,100

Full Controls X X X X X

500 Largest Firms X X X X

Firm-by-Bite Firm-by-State Group X X XFirm-Bite-Year, Firm-State Group-Year X XFirm-Bite-State Group X*** p<0.01, ** p<0.05, * p<0.1

Triple Diff



Worker Characteristics (ACS) and Min Wage Changes


Dropout Employment Share

AL

GA

IA

ID

IN

KS

KY

LA

ME

MS

NCND

NH

NM

OK

PASC

TN

TX

UT

VA

WIWY

AZCOFL

MO MT

OH

OR

WAAR

CT

DEHI

MD

MI

NJ

NV

SD

VT

AK

CA

DC

MA

MN

NE

NYRI

WV

-.04

-.02

0.0

2

0 .5 1 1.5 2 2.5


AL

GA

IAID

IN

KS

KY

LA

ME

MS

NC

ND

NH

NM

OKPA

SC

TN

TX

UT

VA

WI

WY

AZ

COFLMOMT

OHOR

WA

AR CTDEHI MD

MI

NJ

NV

SD

VT

AK

CADC

MA

MNNE

NYRIWV

-.04

-.02

0.0

2

0 .5 1 1.5 2 2.5

Modest Bite Occupations

ALGAIAIDINKSKYLAMEMSNCNDNH

NMOKPASCTNTXUTVAWI

WY AZ COFLMO MTOHORWAAR

CTDEHI MDMI NJ

NV

SDVT

AKCA

DCMAMNNE NY

RI

WV

-.04

-.02

0.0

2

0 .5 1 1.5 2 2.5

Low Bite Occupations

Cha

nge

in D

ropo

ut E

mp

Sha

re

Minimum Wage Change


ACS Results

(1) (2) (3) (1) (2) (3)

After*Statutory -0.00707** -0.00570 -0.00596 After*Statutory*High Bite -0.00337 -0.00309 -0.00579*(0.00311) (0.00371) (0.00365) (0.00314) (0.00356) (0.00341)

After*Statutory 0.00676* 0.00767* 0.00752* After*Statutory*High Bite 0.00773** 0.00792** 0.00346(0.00365) (0.00422) (0.00427) (0.00357) (0.00352) (0.00499)

Young Adult

After*Statutory -0.0101*** -0.0107*** -0.0101*** After*Statutory*High Bite -0.0335*** -0.0322*** -0.0102***(0.00250) (0.00334) (0.00327) (0.00931) (0.0119) (0.00333)

After*Statutory 0.299*** 0.349*** 0.326*** After*Statutory*High Bite 0.965*** 0.952** 0.313***(0.0825) (0.105) (0.102) (0.315) (0.371) (0.115)

State, Occ, Date FEs X X X Group two-ways X X X

Macro/ACA Controls X X Macro/ACA X X

Occ-by-Date, Occ-by-State X Full two-ways X

Triple Diff

Less HS

Some College or More

AgeAge

Young Adult

Some College or More

Less HS

*** p<0.01, ** p<0.05, * p<0.1

Diff‐n‐Diff


Employment

(1) (2) (1) (2)

After*Statutory 0.0114 0.00770 After*Statutory*High Bite 0.0140* 0.0137(0.0119) (0.00783) (0.00774) (0.00841)

After*Statutory 0.00220* 0.00170(0.00113) (0.00124)

State, Occ, Date FEs X X Full two-ways X X

Macro/ACA Controls X Macro/ACA X

Diff‐n‐Diff Triple Diff

Log (Employment) Log (Employment)

High Bite Employment Share


Conclusion• Increases in the minimum wage cause employers to demandmore credentials/skills

• Concentrated in the bottom decile of the job distribution• Increase in HS Diploma requirement of ~ 2 percentage points(7%) for $0.70 to $3.25 increase in min wage

• Decrease in HS dropout employment share of ~0.5 ppt (3%)• Decrease in young adult employment share of ~1 ppt (4%)• Initial e�ects from very new policy changes that are stillaccumulating

• E�ects remain holding constant composition of �rms at a verydetailed level

• we also see some substitution from low- to higher-skilled �rms(a la Aaronson et al.)

• Skill requirements may adjust before, or instead of, anyemployment e�ects

• research tends to focus less on these other margins ofadjustment (e.g., bene�ts Clemens, Kahn and Meer 2017b)

• consequences can still be important for workers


Industry Distributions: BG and JOLTS

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

BG JOLTS Vacancies

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Occupations Distributions: BG, New Hires, Employment

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

BG Ads CPS New Jobs OES Employment

Back


BG-CPS Comparison over Time

Mining

Construction

Manufacturing

Wholesale

Retail

Transport

Info

Fin/Ins

Real Estate

Bus

Ed

Health

Arts

AccommFood

Oth

Govt

-.1

-.05

0.0

5D

evia

tion

from

JO

LTS

201

1-20

15

-.1 -.05 0 .05Deviation from JOLTS 2010

The x-axis is the BG ad share in a sector in 2010 minus the JOLTS job opening share in the same bin in 2010.The y-axis is these differences for each year from 2011-2015. Darker shades are earlier years, lighter shades are later.

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Education by MSA

.5.5

2.5

4.5

6

12.5 13 13.5 14 14.5

Any Education Requirement

14.3

14.5

14.7

14.9

12.5 13 13.5 14 14.5

Years Required, Conditional.1

7.1

8.1

9.2

.21

.15 .2 .25 .3 .35

High School

.15

.2.2

5.3

.35

.1 .15 .2 .25 .3

College

Ave

rage

(B

G)

Average Education of Employed in Occupation (ACS)Smoothed local linear regression of occupation-level education requirement on ACS education percentile. Top panel uses average years ofschooling for employed workers in the MSA as the ACS variable; BG variable is the share of ads with any education requirement (left) oraverage years required conditional on any (right). Bottom panel uses the share of employed workers with exactly a high school diploma(left) or college degree (right) as the ACS variable; BG variables are the share of ads requiring the specified degree.

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Education by Occupation

.3.4

.5.6

.7

10 12 14 16 18

Any Education Requirement

1213

1415

1617

10 12 14 16 18

Years Required, Conditional.0

5.1

.15

.2.2

5.3

0 .1 .2 .3 .4 .5

High School

0.1

.2.3

.4

0 .1 .2 .3 .4 .5

College

Ave

rage

(B

G)

See notes to sub-figure (a). Here ACS variables are average education requirements in the occupation (instead of MSA).

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Occupation Shares in BG and OES

cook

server

cleanerpersonal care

cashier

super-cook

fin clerk

record clerk

admin

construction trades

oth repair

driver

material movers

mgr

consultant

teacher

nurses

super-sales

sales rep

0.0

2.0

4.0

6.0

8B

G O

ccup

atio

n S

hare

0 .02 .04 .06 .08OES Occupation Share

High Bite Modest Bite Low Bite

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