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Job Polarization in Aging Economies

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  • Eva Moreno - Galbis
  • Thepthida Sopraseuth

    ()
    (GRANEM (University of Angers)
    THEMA, Universite de Cergy-Pontoise)

Abstract

This paper extends on French data a previous finding on US data: employment growth has been more important in the lower and upper tail of the job quality distribution. The originality of the paper is to argue that the diffusion of ICT cannot explain alone the polarization at the lower tail of the distribution. However, when combined with population aging, our framework predicts a progressive concentration of employment in the service sector (bottom tail of the job quality distribution). This results from a purely demand shift, since, as revealed by our estimations goods and services are complementary for seniors. The decrease in the relative price of goods induced by ICT diffusion is thus associated with an increased demand for services if the proportion of seniors is increasing.

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Bibliographic Info

Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2013-08.

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Date of creation: 2013
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Handle: RePEc:ema:worpap:2013-08

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Keywords: Job Polarization; Occupational Structure; Aging;

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  1. Arnaud Chéron & Francois Langot & Eva Moreno‐Galbis, 2011. "Labour Market Institutions and Technological Employment," Economica, London School of Economics and Political Science, vol. 78(309), pages 159-186, January.
  2. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
  3. Maurin, Eric & Thesmar, David, 2003. "Changes in the Functional Structure of Firms and the Demand for Skill," CEPR Discussion Papers 3831, C.E.P.R. Discussion Papers.
  4. Alan Manning, 2004. "We Can Work It Out: The Impact of Technological Change on the Demand for Low-Skill Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 581-608, November.
  5. 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.
  6. Mazzolari, Francesca & Ragusa, Giuseppe, 2007. "Spillovers from High-Skill Consumption to Low-Skill Labor Markets," IZA Discussion Papers 3048, Institute for the Study of Labor (IZA).
  7. Alan Manning, 2004. "We Can Work It Out: the Impact of Technological Change on the Demand for Low Skill Workers," CEP Discussion Papers dp0640, Centre for Economic Performance, LSE.
  8. 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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