Salary Determination Using Skill Profiles and Work Experience for the Skilled Technical Workforce

• Activity Number: 113 - Statistical Computing in Modern Statistics
• Type: Contributed
• Date/Time: Monday, August 8, 2022 : 8:30 AM to 10:20 AM
• Sponsor: Section on Statistical Computing
• Author(s): Cesar Montalvo* and Leonel Siwe and Haleigh Tomlin and Vicki Lancaster
• Companies: University of Virginia and University of Virginia and Washington and Lee University and University of Virginia
• Keywords: Fixed Effects Panel Model; Skilled Technical Workforce; Labor Market Information

Abstract

The National Science Board estimates the US will have 3.4 million unfilled skilled technical workforce jobs in 2022. These jobs involve technical knowledge but no bachelor’s degree for entry. Our study demonstrates how technical skills and experience shape the salary returns for these occupations. A fixed-effects model is constructed at the occupation level to explain salaries as a function of technical skills, certifications, and experience within the dimensions of industries and locations. The model will use Virginia labor market information from four major occupation groups: Construction & Extraction; Installation, Maintenance, & Repair; Production; and Transportation from three heterogeneous industrial regions. Skill clusters will be classified using the Burning Glass Technology skill taxonomy and years of experience will consider entry-level, intermediate, and mid-level. Network analysis is also used to establish a metric for the portability of credentials. Identifying returns for technical skills within occupations, industries, and locations will help inform individuals about career pathways that may lead to technical occupations, through reskilling and credential attainment.