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Under the hood of the routine share decline

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  • Jaimovich, Nir
  • Zhang, Miao Ben
  • Vincent, Nicolas

Abstract

Using establishments’ occupational data, we quantify the role of entrants, exiters, and incumbents in driving the decline in the share of routine occupations (R-share) in the U.S. First, entrants have a higher R-share than incumbents, casting doubt on a “creative destruction” mechanism whereby entrants drive this decline. Second, exiters have a higher R-share than their peers, supporting a “positive selection” mechanism. Finally, as incumbents age, they experience a fall in their R-share, which is not due to their size, consistent with the “technology adoption” mechanism. Quantitatively, we show that incumbents are the primary drivers of the aggregate decline in R-share.

Suggested Citation

  • Jaimovich, Nir & Zhang, Miao Ben & Vincent, Nicolas, 2024. "Under the hood of the routine share decline," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004639
    DOI: 10.1016/j.econlet.2023.111437
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