2011
DOI: 10.2139/ssrn.1983952
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Explaining Job Polarization: The Roles of Technology, Offshoring and Institutions

Abstract: This paper develops a simple and empirically tractable model of labor demand to explain recent changes in the occupational structure of employment as a result of technology, offshoring and institutions. This framework takes account not just of direct effects but indirect effects through induced shifts in demand for different products. Using data from 16 European countries, we find that the routinization hypothesis of Autor, Levy and Murnane (2003) is the most important factor behind the observed shifts in empl… Show more

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Cited by 105 publications
(122 citation statements)
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“…The downward trend is further confirmed by the European average employment share data by occupation that we obtain from Goos et al (2010). The average employment share of specific human capital in Europe was 36.3% in 1993 and decreased to 31.3% by 2006.…”
supporting
confidence: 73%
“…The downward trend is further confirmed by the European average employment share data by occupation that we obtain from Goos et al (2010). The average employment share of specific human capital in Europe was 36.3% in 1993 and decreased to 31.3% by 2006.…”
supporting
confidence: 73%
“…Columns 1 reports triple differences in labor demand for the Cobb-Douglas case (see equation (11)), column 2 reports their between-industry component (see equation (12)), and column 3 reports the proportion of the total explained by the between-industry component. Column 4 reports triple differences in labor demand for the CES case with σ=2.5 (see equation (14)), column 5 reports their between-industry component (see equation (32)), and column 6 reports the proportion of the total explained by the between-industry component. Appendix Tables Table A1 Distribution Figure 1 for samples and sources.…”
Section: Appendix B: Eu-klems Datamentioning
confidence: 99%
“…The withinindustry component can be obtained as the difference between (15) and (33). (11) and its total differential, and derivation of (13) and (14).…”
mentioning
confidence: 99%
“…These activities are increasingly carried out in the services sector, and no longer in the manufacturing sector itself. As such, it contributes to the so-called job polarization in advanced economies as the displaced manufacturing workers are likely to be absorbed in personal and distributional services where low-skilled employment opportunities are still growing (Goos, Manning and Salomons 2011).…”
mentioning
confidence: 99%