Labor market polarization, the decline of routine work, and technological change: A quantitative analysis

Lehn, Christian vom

doi:10.1016/j.jmoneco.2019.01.004

Cited by 34 publications

(10 citation statements)

References 23 publications

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“…We note that the results for the decline of the labor share in the United States are roughly in line with other estimates from models that additionally disaggregate labor (Eden and Gaggl, 2018;vom Lehn, 2019).…”

Section: The Automation Narrative Revisitedsupporting

confidence: 89%

“…Krusell, Ohanian, Ríos-Rull and Violante, 2000;Eden and Gaggl, 2018;vom Lehn, 2019;Orak, 2017), the goal of this paper is to clarify why the composition of capital is key for understanding the impact of technology on the distribution of income between aggregate capital and labor. Splitting labor into different groups of workers is primarily useful for the study of other relevant questions, such as the effects of automation on the composition of labor income, its relation to the rising college wage premium (Krusell et al, 2000) and job polarization (Eden and Gaggl, 2018;vom Lehn, 2019;Orak, 2017). We further recognize that disaggregating labor may also contribute to the understanding of general equilibrium effects that cannot be captured by the framework presented here.…”

Section: Notesmentioning

confidence: 99%

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Capital Composition and the Declining Labor Share

Eden

Gaggl

2019

SSRN Journal

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Section: The Automation Narrative Revisitedsupporting

confidence: 89%

Section: Notesmentioning

confidence: 99%

Capital Composition and the Declining Labor Share

Eden

Gaggl

2019

SSRN Journal

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“…10 While ICT capital is mostly included in equipment, the equipment category considered in Krusell et al (2000) is much broader and includes vehicles, electrical machinery, and even furniture. Like Krusell et al (2000), vom Lehn (2015 also studies the declining price of equipment. While his analysis of the labor market is also guided by the tasks framework (Autor et al, 2003), his approach differs from ours both in terms of the classification of occupations and the calibration approach.…”

Section: Decomposing the Labor Income Sharementioning

confidence: 99%

On the welfare implications of automation

Eden

Gaggl

2018

Review of Economic Dynamics

104

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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“…We target the elasticity of substitution between IT and labor in vom Lehn (2020). This measure was calibrated using time-series variation.…”

Section: H4 the Elasticity Of Substitution Between It And Labormentioning

confidence: 99%

IT and Urban Polarization

Eeckhout¹,

Hedtrich

Pinheiro

2021

Working Paper (Federal Reserve Bank of Cleveland)

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We show that di↵erential IT investment across cities has been a key driver of job and wage polarization since the 1980s. Using a novel data set, we establish two stylized facts: IT investment is highest in firms in large and expensive cities, and the decline in routine cognitive occupations is most prevalent in large and expensive cities. To explain these facts, we propose a model mechanism where the substitution of routine workers by IT leads to higher IT adoption in large cities due to a higher cost of living and higher wages. We estimate the spatial equilibrium model to trace out the e↵ects of IT on the labor market between 1990 and 2015. We find that the fall in IT prices explains 50 percent of the rising wage gap between routine and non-routine cognitive jobs. The decline in IT prices also accounts for 28 percent of the shift in employment away from routine cognitive towards non-routine cognitive jobs. Moreover, our estimates show that the impact of IT is uneven across space. Expensive locations have seen a stronger displacement of routine cognitive jobs and a larger widening of the wage gap between routine and non-routine cognitive jobs.

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Labor market polarization, the decline of routine work, and technological change: A quantitative analysis

Cited by 34 publications

References 23 publications

Capital Composition and the Declining Labor Share

Capital Composition and the Declining Labor Share

On the welfare implications of automation

IT and Urban Polarization

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