PT - JOURNAL ARTICLE AU - Håkanson, Christina AU - Lindqvist, Erik AU - Vlachos, Jonas TI - Firms and Skills AID - 10.3368/jhr.56.2.0517-8801R2 DP - 2021 Mar 31 TA - Journal of Human Resources PG - 512--538 VI - 56 IP - 2 4099 - http://jhr.uwpress.org/content/56/2/512.short 4100 - http://jhr.uwpress.org/content/56/2/512.full SO - J Hum Resour2021 Mar 31; 56 AB - We document a significant increase in the sorting of workers by cognitive and noncognitive skills across Swedish firms during 1986–2008. During this period, worker skill differences between firms increased, while within-firm skill differences fell. A significant fraction of the increase in the between-firm differences in cognitive skill is due to high-skilled workers moving into the information and communications technology (ICT) sector. Within-firm skill differences fell in all major industries, but particularly in the manufacturing sector. Combined with steeper firm-level skill gradients, the increase in sorting can account for 45 percent of the increase in between-firm wage dispersion during our period of study.