Digitalization, Change in Skill Distance Between Occupations and Occupational Mobility

Author: Arnaud Dupuy (University of Luxembourg)Morgan Raux (Aix-Marseille School of Economics)Sara Signorelli (CREST - Ecole Polytechnique)
Posted: 2 March 2026

Abstract

Technological change affects labor markets not only by shifting labor demand across occupations, but also by reshaping the skill distances that govern workers’ ability to move between jobs. This paper studies the digitalization wave of the 2010s using task data from online job postings, matched employer–employee data, and a gravity framework of occupational mobility. We show that while most occupations became more digital, skill distances converged for some occupation pairs and diverged for others, increasing mobility along some pathways and reducing it along others. Counterfactual simulations show that these frictions are meaningful and slow reallocation out of shrinking occupations.
JEL codes: J23, J24, J62
Keywords: Occupation mobility, Technological change, Matching