How complementarity influences a skill’s economic value

Summary

One consequence of technological advancements is that the mix of skills required for different jobs is in a state of flux. Workers must adapt and acquire new skills, yet determining the exact skills needed for emerging roles and the economic advantage of learning these skills is a challenge, as these factors are frequently unclear and in constant change. This presents a challenge for employees, businesses, and policymakers in creating effective and profitable strategies for skill development. To mitigate this uncertainty, Fabian Stephany and Ole Teutloff suggest in this paper a methodology to assign a market value to skills, considering both the supply and demand in the market and how these skills complement each other.