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Where do workers from declining routine jobs go and does migration matter?

Author

Listed:
  • Merja Kauhanen

    (Palkansaajien tutkimuslaitos)

  • Terhi Maczulskij

Abstract

Using administrative panel data on the entire Finnish population, we study the occupational switching patterns of routine workers to different labor market states. We find that workers tend to move out from routine-intensive occupations. The direction of the shift is nevertheless different between routine cognitive and routine manual workers. Routine manual workers are more likely to end up in low-paying non-routine manual jobs or become unemployed, while routine cognitive workers are more likely to move upwards to non-routine cognitive jobs. Worker migration particularly to urban and highly industrialized regions seems to mitigate the negative labor market consequences of occupational polarization.

Suggested Citation

  • Merja Kauhanen & Terhi Maczulskij, 2017. "Where do workers from declining routine jobs go and does migration matter?," Working Papers 314, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:314
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    More about this item

    Keywords

    job polarization; routine manual; routine cognitive; occupational mobility; migration;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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