We argue that standard models with one-dimensional skills and human capital cannot explain these distinct patterns. Instead we develop a model in which human capital is occupation-specific, but in which non-routine occupations require upfront occupation-specific human capital built-up....

This paper examines the role of relationship skills in determining life cycle outcomes in education, labor and marriage markets. We posit a two-factor model with human capital and "relationship" or "partnering" skill. Relationship skill is understood in our framework as the ability to maintain...

Does the market allocate the right workers to the right jobs? Since observable (to economists) variables account for only a small fraction of the wage variance in the data, to answer this question it is essential to study assortative matching between employers and employees based on their...