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Technical Change and Polarization of the Labor Market: Evidence for Brazil, Colombia and Mexico

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  • Carlos Medina

    ()

  • Christian Posso

    ()

Abstract

We use occupations descriptions for Brazil, Colombia and Mexico, to build computer-use related tasks intensities, and link then to series of cross sections of data of each country in order to empirically assess to what extent the observed empirical regularities, and the reallocation of workers across occupations that require different tasks intensities, are consistent with the SBTC or polarization models. We find an increase of both wages and workers at the extremes of the wage or skills occupations distribution, the less routinaire/computerizabe, particularly pronounced in the period since personal computers began to be introduced in the region. This finding, along with other empirical regularities, provides support for some of the main implications of the polarization model in the cases of Colombia and Mexico.

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Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 614.

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Handle: RePEc:bdr:borrec:614

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Keywords: Relative Wages; Income Distribution; Technical Change. Classification JEL:J3; D3; O3;

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  1. Luis Eduardo Arango & Carlos Esteban Posada & José Darío Uribe, 2004. "Cambios en la Estructura de los Salarios Urbanos en Colombia (1984-2000)," BORRADORES DE ECONOMIA 002088, BANCO DE LA REPÚBLICA.
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  12. Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
  13. Per Krusell & Lee E. Ohanian & Jose-Victor Rios-Rull & Giovanni L. Violante, 1997. "Capital-skill complementarity and inequality: a macroeconomic analysis," Staff Report 239, Federal Reserve Bank of Minneapolis.
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  17. Fajnzylber, Pablo & Fernandes,Ana Margarida, 2004. "International economic activities and the demand for skilled labor: evidence from Brazil and China," Policy Research Working Paper Series 3426, The World Bank.
  18. Christian Manuel Posso Suárez, . "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," Borradores de Economia 529, Banco de la Republica de Colombia.
  19. Mauricio Santamaría, 2004. "Income Inequality, Skills And Trade: Evidence From Colombia During The 80s And 90s," DOCUMENTOS CEDE 002832, UNIVERSIDAD DE LOS ANDES-CEDE.
  20. Carlos Medina & Cristhian Manuel Posso, 2009. "Colombian and South American Immigrants in the United States of America: Education Levels, Job Qualifications and the Decision to Go Back Home," BORRADORES DE ECONOMIA 005758, BANCO DE LA REPÚBLICA.
  21. Kevin M. Murphy & W. Craig Riddell & Paul M. Romer, 1998. "Wages, Skills, and Technology in the United States and Canada," NBER Working Papers 6638, National Bureau of Economic Research, Inc.
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Cited by:
  1. Christian Manuel Posso Suárez, . "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," Borradores de Economia 529, Banco de la Republica de Colombia.
  2. Carmiña O: Vargas, 2011. "Desigualdad de salarios en Colombia: evidencia a partir de encuestas de hogares 1984 – 2010," BORRADORES DE ECONOMIA 008808, BANCO DE LA REPÚBLICA.

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