Fig. 2

Predictive power of task intensities for FDI. Source: BiBB Employment Survey and IAB-ReLOC. Fig. 1 displays the coefficient paths of estimates of \(\varvec{\beta }_1\) from Eq. (3) with respect to 50 values of the penalty parameter \(\lambda\). Each line corresponds to the coefficient of task intensity (see Table 1). The left (right) panel shows the evolution within the manufacturing (service) sector. The dashed line denotes the model with the lowest MSPE (strongest predictive power), which is obtained from a fivefold cross-validation