Abstract
Technological choices, product market strategies, and other organizational characteristics affect how tasks are grouped into jobs. The design of jobs determines the skills needed by workers in order to do them effectively. However, people possess skills and organizations need to find the right incentives to motivate workers to fully apply their skills. This is not an easy task and mistakes in the design of incentives can have disastrous consequences for firms' survival. Policymakers should complement policy interventions aimed at skilling the workforce with interventions aimed at increasing skill utilization.
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