Publications
Publications
- April 2025
- Nature Human Behaviour
Skill Dependencies Uncover Nested Human Capital
By: Moh Hosseinioun, Frank Neffke, Letian Zhang and Hyejin Youn
Abstract
Modern economies require increasingly diverse and specialized skills, many
of which depend on the acquisition of other skills first. Here we analyse
US survey data to reveal a nested structure within skill portfolios, where
the direction of dependency is inferred from asymmetrical conditional
probabilities—occupations require one skill conditional on another. This
directional nature suggests that advanced, specific skills and knowledge
are often built upon broader, fundamental ones. We examine 70 million job
transitions to show that human capital development and career progression
follow this structured pathway in which skills more aligned with the nested
structure command higher wage premiums, require longer education and
are less likely to be automated. These disparities are evident across genders
and racial/ethnic groups, explaining long-term wage penalties. Finally, we
find that this nested structure has become even more pronounced over the
past two decades, indicating increased barriers to upward job mobility.
Keywords
Competency and Skills; Human Capital; Personal Development and Career; Equality and Inequality; Analytics and Data Science
Citation
Hosseinioun, Moh, Frank Neffke, Letian Zhang, and Hyejin Youn. "Skill Dependencies Uncover Nested Human Capital." Nature Human Behaviour 9, no. 4 (April 2025): 673–687.