Who creates jobs with broad skillsets? The crucial role of firms

ILOWorkingPaper94 June/2023 ▶Whocreatesjobswithbroadskillsets?Thecrucialroleoffirms Authors/GiordanoDeMarzo,NandithaMathew,AngelicaSbardella Copyright©InternationalLabourOrganization2023 ThisisanopenaccessworkdistributedundertheCreativeCommonsAttribution4.0InternationalLicense(https://creativecommons.org/licenses/by/4.0/).Userscanreuse,share,adaptandbuildupontheoriginalwork,asdetailedintheLicense.TheILOmustbeclearlycreditedastheown-eroftheoriginalwork.TheuseoftheemblemoftheILOisnotpermittedinconnectionwithusers’work. Attribution–Theworkmustbecitedasfollows:DeMarzo,G.,Mathew,N.,Sbardella,A.Whocre-atesjobswithbroadskillsets?Thecrucialroleoffirms.ILOWorkingPaper94.Geneva:InternationalLabourOffice,2023. Translations–Incaseofatranslationofthiswork,thefollowingdisclaimermustbeaddedalongwiththeattribution:ThistranslationwasnotcreatedbytheInternationalLabourOrganization(ILO)andshouldnotbeconsideredanofficialILOtranslation.TheILOisnotresponsibleforthecontentoraccuracyofthistranslation. Adaptations–Incaseofanadaptationofthiswork,thefollowingdisclaimermustbeaddedalongwiththeattribution:ThisisanadaptationofanoriginalworkbytheInternationalLabourOrganization(ILO).ResponsibilityfortheviewsandopinionsexpressedintheadaptationrestssolelywiththeauthororauthorsoftheadaptationandarenotendorsedbytheILO. ThisCClicensedoesnotapplytonon-ILOcopyrightmaterialsincludedinthispublication.Ifthematerialisattributedtoathirdparty,theuserofsuchmaterialissolelyresponsibleforclearingtherightswiththerightholder. Anydisputearisingunderthislicensethatcannotbesettledamicablyshallbereferredtoarbitra-tioninaccordancewiththeArbitrationRulesoftheUnitedNationsCommissiononInternationalTradeLaw(UNCITRAL).Thepartiesshallbeboundbyanyarbitrationawardrenderedasaresultofsucharbitrationasthefinaladjudicationofsuchadispute. AllqueriesonrightsandlicensingshouldbeaddressedtotheILOPublishingUnit(RightsandLicensing),1211Geneva22,Switzerland,orbyemailtorights@ilo.org. ISBN9789220392706(print),ISBN9789220392669(webPDF),ISBN9789220392676(epub),ISBN9789220392683(mobi),ISBN9789220392690(html).ISSN2708-3438(print),ISSN2708-3446 (digital)https://doi.org/10.54394/KFYG1195 ThedesignationsemployedinILOpublications,whichareinconformitywithUnitedNationspractice,andthepresentationofmaterialthereindonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheILOconcerningthelegalstatusofanycountry,areaorterritoryorofitsauthorities,orconcerningthedelimitationofitsfrontiers. Theresponsibilityforopinionsexpressedinsignedarticles,studiesandothercontributionsrestssolelywiththeirauthors,andpublicationdoesnotconstituteanendorsementbytheILOoftheopinionsexpressedinthem. Referencetonamesoffirmsandcommercialproductsandprocessesdoesnotimplytheiren-dorsementbytheILO,andanyfailuretomentionaparticularfirm,commercialproductorpro-cessisnotasignofdisapproval. InformationonILOpublicationsanddigitalproductscanbefoundat:www.ilo.org/publns ILOWorkingPaperssummarizetheresultsofILOresearchinprogress,andseektostimulatediscussionofarangeofissuesrelatedtotheworldofwork.CommentsonthisILOWorkingPaperarewelcomeandcanbesenttoRESEARCH@ilo.org,liepmann@ilo.org. Authorizationforpublication:RichardSamans,DirectorRESEARCH ILOWorkingPaperscanbefoundat:www.ilo.org/global/publications/working-papers Suggestedcitation: DeMarzo,G.,Mathew,N.,Sbardella,A.2023.Whocreatesjobswithbroadskillsets?Thecrucial roleoffirms,ILOWorkingPaper94(Geneva,ILO).https://doi.org/10.54394/KFYG1195 Abstract Ourstudyinvestigatestheheterogeneityofskilldemandswithinoccupations,thefirmactivitiesthatareassociatedwithdemandforbroaderskillsets,andthefirmcharacteristicsthatarerelat-edtoparticularskillsanddifferentcombinationsofskills.Weuseauniquematcheddatabaseoffirm-leveldataandonlinejobvacancydataforadevelopingeconomy,namely,India.Employingamulti-levelmachinelearningtechniqueandaninnovativeskilltaxonomy,weidentifyandcate-gorizeskillrequirementsoffirms.Ourempiricalanalysisprovidesrobustevidenceofsignificantheterogeneityinskillrequirementsacrossfirmswithinthesameoccupations.Additionally,weshowthatfirmsdemandingdiverseskillsdifferfromtheircounterparts.Firmsthatarecompet-itiveininternationalmarkets,aswellasthosethataremoreinnovative,requiredigitalskillsandspecificcombinationsofdigitalandotherskills.Ourfindingshighlightthecrucialroleplayedbyfirmsindefiningthechangingnatureofwork. Abouttheauthors GiordanoDeMarzoisaPhDcandidateatSapienzaUniversityDepartmentofPhysics,EnricoFermiResearchCentreandSapienzaSchoolforAdvancedStudies.HeisalsoajuniorresearchfellowattheComplexityScienceHubViennaandhasbeenaconsultantforILO,UNU-MERITandTranslated.HisresearchinterestscoverdifferenttopicsofComplexSystems,withafocusontheeffectsofrecommendationalgorithmsonopiniondynamicsandsocialfragmentation. NandithaMathewisaresearcheratUNU-MERIT.Nanditha'sresearchinterestsfocusbroadlyonthemicroeconomicsofinnovationanddevelopment,indetail,onfirmcapabilities,firmper-formanceandindustrialpolicy.Nandithaisleadingtheteamon"Conflictingandcomplementarypoliciesfordevelopment"withinthenewfla