Are Skills Becoming an Increasingly Important Determinant of Life Outcomes?

Abstract

Several theoretical traditions posit that individual skills (or human capital) have become stronger predictors of life outcomes over time. To date, however, significant limitations have hindered a confident empirical assessment of this important idea. Using six nationally representative datasets, the authors find surprisingly little support for the notion that measurable skills are becoming more important over time. Instead, the results reveal a durable relationship between measurable skills and socioeconomic outcomes despite periods of significant societal change.