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Job polarization, task prices and the distribution of task returns

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  • Etheridge, Ben
  • Cavaglia, Chiara

Abstract

We make two contributions to understanding the large shifts in occupational structure seen across developed countries. First, we estimate underlying prices on occupations, grouped by predominant task, using panel data from the UK and Germany. In both countries, price growth is positively associated with employment share growth. This pattern, which disappears with observed wages, is consistent with changes to labour demand, such as from technological changes. Second, we use the underlying Roy framework to further interpret these movements, by identifying the covariance structure of returns across tasks. The estimates show the importance of sorting based on productivity in abstract tasks.

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  • Etheridge, Ben & Cavaglia, Chiara, 2017. "Job polarization, task prices and the distribution of task returns," ISER Working Paper Series 2017-09, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2017-09
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    Cited by:

    1. Tommaso AGASISTI & Geraint JOHNES & Marco PACCAGNELLA, 2021. "Tasks, occupations and wages in OECD countries," International Labour Review, International Labour Organization, vol. 160(1), pages 85-112, March.
    2. Michael J. Böhm & Hans-Martin von Gaudecker & Felix Schran, 2019. "Occupation Growth, Skill Prices, and Wage Inequality," CRC TR 224 Discussion Paper Series crctr224_2019_129, University of Bonn and University of Mannheim, Germany.
    3. Michael J. Böhm, 2020. "The price of polarization: Estimating task prices under routine‐biased technical change," Quantitative Economics, Econometric Society, vol. 11(2), pages 761-799, May.

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