Abstract

This study links and analyzes textual data on patents and occupations to create a patent volume by occupation and analyzes the effect of skill characteristics proxied by patent volume on employment and wages. We used CPC code descriptions, and Occupational Dictionary descriptions, linking US SOC, IOC, KSOC. Using FastText as a word embedding method, we calculated the cosine similarity of O*NET and CPC texts to create a patent volume variable by occupation. The analysis shows that the effect of technology on employment and wage changes is statistically significant (-) in the panel fixed effects model. While the employment effect is largely non-linear, i.e., decreasing in the short run and increasing in the medium and long run, the wage effect shows a negative linear relationship. These findings are largely in line with existing international studies in this area and confirm the general finding that the effects of technological change are not uniform or unidimensional and require policy responses that take into account different contexts and dimensions.

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