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Job Polarization and Task-Biased Technological Change: Evidence from Sweden, 1975–2005

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  • Adrian Adermon
  • Magnus Gustavsson

Abstract

In this paper, we show that between 1975 and 2005, Sweden exhibited a pattern of job polarization with expansions of the highest- and lowest-paid jobs compared to middle-wage jobs. The most popular explanation for such a pattern is the hypothesis of task-biased technological change, where technological progress reduces the demand for routine middle-wage jobs but increases the demand for non-routine jobs located at the tails of the job–wage distribution. However, our estimates do not support this explanation for the 1970s and 1980s. Stronger evidence for task-biased technological change, albeit not conclusive, is found for the 1990s and 2000s. In particular, there is both a statistically and economically significant growth of non-routine jobs and a decline of routine jobs. However, results for wages are mixed; while task-biased technological change cannot explain changes in between-occupation wage differentials, it does have considerable explanatory power for changes in within-occupation wage differentials.

Suggested Citation

  • Adrian Adermon & Magnus Gustavsson, 2015. "Job Polarization and Task-Biased Technological Change: Evidence from Sweden, 1975–2005," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 878-917, July.
    • Handle: RePEc:bla:scandj:v:117:y:2015:i:3:p:878-917
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    File URL: http://hdl.handle.net/10.1111/sjoe.12109
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