Specific versus general skills and abilities: A job level examination of relationships with wage

The extensive literature purporting an upgrading in occupational skill requirements paired with the perception of a skill shortage in the workforce calls for the need to develop workplace skills and abilities. However, decisions about which skills to develop would be aided by information about which skills/abilities are valued most highly and lead to higher wage jobs. The job evaluation literature and labour‐market wage theory present competing hypotheses about skill—wage relationships. The ACT Inc.'s Work Keys® system, the prototype Occupational Information Network, and the fourth edition Dictionary of Occupational Titles job analytic databases were paired with concurrent wage data. These data made it possible to conduct a job‐level evaluation of whether specific skills/abilities could be identified that were most strongly linked to wage or whether broad skill/ability factors accounted for a majority of wage variance. Results indicated that a majority of the wage variance explainable by skills/abilities could be attributed to a general cognitive factor.