IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v234y2024ics0165176523004639.html
   My bibliography  Save this article

Under the hood of the routine share decline

Author

Listed:
  • Jaimovich, Nir
  • Zhang, Miao Ben
  • Vincent, Nicolas

Abstract

Using establishments’ occupational data, we quantify the role of entrants, exiters, and incumbents in driving the decline in the share of routine occupations (R-share) in the U.S. First, entrants have a higher R-share than incumbents, casting doubt on a “creative destruction” mechanism whereby entrants drive this decline. Second, exiters have a higher R-share than their peers, supporting a “positive selection” mechanism. Finally, as incumbents age, they experience a fall in their R-share, which is not due to their size, consistent with the “technology adoption” mechanism. Quantitatively, we show that incumbents are the primary drivers of the aggregate decline in R-share.

Suggested Citation

  • Jaimovich, Nir & Zhang, Miao Ben & Vincent, Nicolas, 2024. "Under the hood of the routine share decline," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004639
    DOI: 10.1016/j.econlet.2023.111437
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176523004639
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2023.111437?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nir Jaimovich & Henry E. Siu, 2020. "Job Polarization and Jobless Recoveries," The Review of Economics and Statistics, MIT Press, vol. 102(1), pages 129-147, March.
    2. James Harrigan & Ariell Reshef & Farid Toubal, 2021. "The March of the Techies: Job Polarization Within and Between Firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02973332, HAL.
    3. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    4. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
    5. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    6. Heyman, Fredrik, 2016. "Job polarization, job tasks and the role of firms," Economics Letters, Elsevier, vol. 145(C), pages 246-251.
    7. Harrigan, James & Reshef, Ariell & Toubal, Farid, 2021. "The March of the Techies: Job Polarization Within and Between Firms," Research Policy, Elsevier, vol. 50(7).
    8. Petri Böckerman & Seppo Laaksonen & Jari Vainiomäki, 2019. "Does ICT Usage Erode Routine Occupations at the Firm Level?," LABOUR, CEIS, vol. 33(1), pages 26-47, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harrigan, James & Reshef, Ariell & Toubal, Farid, 2021. "The March of the Techies: Job Polarization Within and Between Firms," Research Policy, Elsevier, vol. 50(7).
    2. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    3. Jaimovich, Nir & Saporta-Eksten, Itay & Siu, Henry & Yedid-Levi, Yaniv, 2021. "The macroeconomics of automation: Data, theory, and policy analysis," Journal of Monetary Economics, Elsevier, vol. 122(C), pages 1-16.
    4. David Hémous & Morten Olsen, 2022. "The Rise of the Machines: Automation, Horizontal Innovation, and Income Inequality," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(1), pages 179-223, January.
    5. Maarek, Paul & Moiteaux, Elliot, 2021. "Polarization, employment and the minimum wage: Evidence from European local labor markets," Labour Economics, Elsevier, vol. 73(C).
    6. Cortes, Guido Matias & Salvatori, Andrea, 2019. "Delving into the demand side: Changes in workplace specialization and job polarization," Labour Economics, Elsevier, vol. 57(C), pages 164-176.
    7. Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2021. "Automation, unemployment, and the role of labor market training," European Economic Review, Elsevier, vol. 137(C).
    8. Siena Daniele, & Zago Riccardo., 2021. "Job Polarization and the Flattening of the Price Phillips Curve," Working papers 819, Banque de France.
    9. Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario & Sostero, Matteo, 2021. "Digitalization, routineness and employment: An exploration on Italian task-based data," Research Policy, Elsevier, vol. 50(7).
    10. Cortes, Guido Matias & Jaimovich, Nir & Nekarda, Christopher J. & Siu, Henry E., 2020. "The dynamics of disappearing routine jobs: A flows approach," Labour Economics, Elsevier, vol. 65(C).
    11. Terhi Maczulskij, 2019. "Occupational Mobility of Routine Workers," Working Papers 327, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    12. Mandelman, Federico S., 2016. "Labor market polarization and international macroeconomic dynamics," Journal of Monetary Economics, Elsevier, vol. 79(C), pages 1-16.
    13. Bustos, Emil, 2023. "The Effect of Centrally Bargained Wages on Firm Growth," Working Paper Series 1456, Research Institute of Industrial Economics.
    14. Riccardo Zago, 2020. "Job Polarization, Skill Mismatch and the Great Recession," Working papers 755, Banque de France.
    15. Du Yuhong & Wei Xiahai, 2020. "Task content routinisation, technological change and labour turnover: Evidence from China," The Economic and Labour Relations Review, , vol. 31(3), pages 324-346, September.
    16. Cortes, Guido Matias & Forsythe, Eliza, 2021. "The heterogenous labour market impact of the COVID-19 pandemic," CLEF Working Paper Series 40, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    17. Luciana Aimone Gigio, & Silvia Camussi & Vincenzo Maccarrone, 2021. "Changes in the employment structure and in job quality in Italy: a national and regional analysis," Questioni di Economia e Finanza (Occasional Papers) 603, Bank of Italy, Economic Research and International Relations Area.
    18. Tschopp, Jeanne, 2015. "The Wage Response to Shocks: The Role of Inter-Occupational Labour Adjustment," Labour Economics, Elsevier, vol. 37(C), pages 28-37.
    19. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    20. Dirk Antonczyk & Thomas DeLeire & Bernd Fitzenberger, 2018. "Polarization and Rising Wage Inequality: Comparing the U.S. and Germany," Econometrics, MDPI, vol. 6(2), pages 1-33, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.