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Polarization and the growth of low‐skill service jobs in Spanish local labor markets

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  • Davide Consoli
  • Mabel Sánchez‐Barrioluengo

Abstract

This paper analyzes the long‐term transformations of the occupational structure in 50 provinces of Spain with a view to ascertain the existence and assess the extent of employment polarization. The peculiar characteristics of this country, namely rigid labor markets and the relatively recent transition to democracy, make for an interesting addition to existing studies on this topic. In line with previous literature on other countries, we find a strong association between the decline of “routine” mid‐skill jobs and the expansion of low‐skill service employment as well as differential labor market outcomes by levels of formal education. Results are robust to various controls and instrumental variables that account for long‐term industry specialization. We also find a positive local multiplier effect of high‐skilled workers on the demand for nontradable service jobs.

Suggested Citation

  • Davide Consoli & Mabel Sánchez‐Barrioluengo, 2019. "Polarization and the growth of low‐skill service jobs in Spanish local labor markets," Journal of Regional Science, Wiley Blackwell, vol. 59(1), pages 145-162, January.
  • Handle: RePEc:bla:jregsc:v:59:y:2019:i:1:p:145-162
    DOI: 10.1111/jors.12409
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    Cited by:

    1. Davide Consoli & Fabrizio Fusillo & Gianluca Orsatti & Francesco Quatraro, 2021. "Skill endowment, routinisation and digital technologies: evidence from U.S. Metropolitan Areas," Industry and Innovation, Taylor & Francis Journals, vol. 28(8), pages 1017-1045, September.
    2. Roupakias, Stelios, 2023. "Employment polarization: evidence from regions in Greece," MPRA Paper 118696, University Library of Munich, Germany.
    3. David Boto-García & Marta Escalonilla, 2022. "University education, mismatched jobs: are there gender differences in the drivers of overeducation?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 861-902, October.
    4. Scott Rozelle & Yiran Xia & Dimitris Friesen & Bronson Vanderjack & Nourya Cohen, 2020. "Moving Beyond Lewis: Employment and Wage Trends in China’s High- and Low-Skilled Industries and the Emergence of an Era of Polarization," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 555-589, December.
    5. Lordan, Grace & Stringer, Eliza-Jane, 2022. "People versus machines: The impact of being in an automatable job on Australian worker’s mental health and life satisfaction," Economics & Human Biology, Elsevier, vol. 46(C).
    6. Mabel Sánchez Barrioluengo, 2019. "Job Composition and Its Effect on UK Firms in the Digital Era," SPRU Working Paper Series 2019-24, SPRU - Science Policy Research Unit, University of Sussex Business School.
    7. Irene Brunetti & Valerio Intraligi & Andrea Ricci & Valeria Cirillo, 2020. "Low‐skill jobs and routine tasks specialization: New insights from Italian provinces," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1561-1581, December.
    8. 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.

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