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Automation and Job Polarization: On the Decline of Middling Occupations in Europe

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  • Vahagn Jerbashian

Abstract

Using data from 10 Western European countries, I provide evidence that the fall in prices of information technologies (IT) is associated with a lower share of employment in middle‐wage occupations and a higher share of employment in high wage occupations in industries which depend more on IT relative to industries which depend less. Similar results hold within gender and age groups, with notable differences in these groups. For instance, the share of employment in high wage occupations among males has increased less than among females with the fall in IT prices.

Suggested Citation

  • Vahagn Jerbashian, 2019. "Automation and Job Polarization: On the Decline of Middling Occupations in Europe," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(5), pages 1095-1116, October.
    • Handle: RePEc:bla:obuest:v:81:y:2019:i:5:p:1095-1116
    DOI: 10.1111/obes.12298
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    Cited by:

    1. Yang, Siying & Liu, Fengshuo & Lu, Jingjing & He, Xiaogang, 2022. "Does occupational injury promote industrial robot applications?," Technology in Society, Elsevier, vol. 70(C).
    2. Christenko, Aleksandr, 2022. "Automation and occupational mobility: A task and knowledge-based approach," Technology in Society, Elsevier, vol. 70(C).
    3. Vahagn Jerbashian, 2026. "On the elasticity of substitution between labor and ICT and IP capital and traditional capital," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 60, April.
    4. Alexandri, Eva & Antón, José-Ignacio & Lewney, Richard, 2024. "The impact of climate change mitigation policies on European labour markets," Ecological Economics, Elsevier, vol. 216(C).
    5. Lewandowski, Piotr & Keister, Roma & Hardy, Wojciech & Górka, Szymon, 2020. "Ageing of routine jobs in Europe," Economic Systems, Elsevier, vol. 44(4).
    6. Vahagn Jerbashian & Montserrat Vilalta-Bufí, 2025. "Working from home in European countries before and during the COVID-19 pandemic," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 16(1), pages 83-106, March.
    7. Albinowski, Maciej & Lewandowski, Piotr, 2024. "The impact of ICT and robots on labour market outcomes of demographic groups in Europe," Labour Economics, Elsevier, vol. 87(C).
    8. Antón, José-Ignacio & Fernández-Macías, Enrique & Winter-Ebmer, Rudolf, 2020. "Does Robotization Affect Job Quality? Evidence from European Regional Labour Markets," IZA Discussion Papers 13975, IZA Network @ LISER.
    9. Jerbashian, Vahagn, 2021. "Trade in information technologies and changes in the demand for occupations," China Economic Review, Elsevier, vol. 67(C).
    10. José‐Ignacio Antón & Enrique Fernández‐Macías & Rudolf Winter‐Ebmer, 2023. "Does robotization affect job quality? Evidence from European regional labor markets," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(3), pages 233-256, July.
    11. Nicola Pontarollo & Carolina Serpieri, 2021. "Challenges and Opportunities to Regional Renewal in the European Union," International Regional Science Review, , vol. 44(1), pages 142-169, January.
    12. Gu, Ke & Stoyanov, Andrey, 2022. "Female Labor Supply and International Trade," MPRA Paper 111778, University Library of Munich, Germany.
    13. Jerbashian, Vahagn & Vilalta-Bufi, Montserrat, 2020. "The Impact of ICT on Working from Home: Evidence from EU Countries," GLO Discussion Paper Series 719, Global Labor Organization (GLO).
    14. Lucas van der Velde, 2020. "Within Occupation Wage Dispersion and the Task Content of Jobs," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 1161-1197, October.
    15. AndrÉ van Hoorn, 2022. "Automatability of Work and Preferences for Redistribution," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(1), pages 130-157, February.
    16. Vahagn Jerbashian & Montserrat Vilalta-Bufí, 2022. "Working from home, pandemic, occupations, industries," UB School of Economics Working Papers 2022/427, University of Barcelona School of Economics.
    17. Ma, Bianjing & Chen, Lei & Wang, Xiaohui & Ding, Song, 2024. "Who benefits more from the digital economy: (Non-)Cognitive ability and the labor income premium," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    18. Kerstin Hotte & Melline Somers & Angelos Theodorakopoulos, 2022. "Technology and jobs: A systematic literature review," Papers 2204.01296, arXiv.org.
    19. Fernández-Macías, Enrique & Klenert, David & Antón, José-Ignacio, 2021. "Not so disruptive yet? Characteristics, distribution and determinants of robots in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 76-89.

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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