Using a new identification strategy, we jointly estimate the growth in occupationalwage premia as well as time-varying occupation-specific life-cycle profiles for Swedishworkers 1996–2013. We document a substantial increase in between-occupation wageinequality due to differential growth in premia. The association of wage premiumgrowth and employment growth is positive, suggesting that premium growth ispredominantly driven by demand side factors. We also find that wage growth dueto occupation-specific skill acquisition was more dispersed in the early years of thesample period. Our results are robust to allowing for occupation-level changes inreturns to cognitive and psycho-social skills.