Abstract: Occupations are often seen as key labor market determinants, but little is known about their effect on workers. Using worker-occupation fixed effects, we first find that occupations explain only 3% of wage variance in the United States--too little to explain much of inequality, gender wage gaps, or other issues. Second, by introducing a new natural measure of occupational distance, we find that some occupations are consistently pluripotent, propelling workers to diverse jobs and allowing them to quickly overcome job loss. Third, we compile our estimates to provide new guidance for job seekers to help them choose better-informed career paths.
Keywords: Occupations, Variance decomposition, Earnings growth
JEL Classification: J24; J31; J62; J63