How important are within‐occupation task changes for wage growth? Evidence from administrative micro data

We examine how changes in task content over time condition occupational wage development. Using survey data from Germany, we document substantial heterogeneity in within‐occupation changes in task content. Combining this evidence with administrative data on individual employment outcomes over a 25‐year period, we find important heterogeneity in wage penalties amongst jobs that were initially routine‐task‐intensive. While occupations that remain (relatively) routine‐intensive generate substantial wage penalties, occupations with a decreasing routine intensity experience stable or even increasing wages. These findings suggest that changing task profiles of occupations is an important adaptation mechanism to technological change. They cannot be explained by composition or cohort effects.