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Job polarization and rising inequality in the nation and the New York-northern New Jersey region

  • Jaison R. Abel
  • Richard Deitz

Since the 1980s, employment opportunities in both the United States and the New York–northern New Jersey region have become increasingly polarized. While technological advances and globalization have created new jobs for workers at the high end of the skill spectrum and largely spared the service jobs of workers at the low end, these forces have displaced many jobs involving routine tasks—traditionally the sphere of middle-skill workers. Moreover, these same forces have pushed up wages for high-skill workers disproportionately, contributing to increased wage inequality. The rise in inequality has been especially sharp in downstate New York and northern New Jersey, where the wage gap is now markedly larger than in the nation.

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Article provided by Federal Reserve Bank of New York in its journal Current Issues in Economics and Finance.

Volume (Year): 18 (2012)
Issue (Month): Oct ()
Pages:

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Handle: RePEc:fip:fednci:y:2012:i:oct:n:v.18no.7
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  1. Nir Jaimovich & Henry E. Siu, 2012. "The Trend is the Cycle: Job Polarization and Jobless Recoveries," NBER Working Papers 18334, National Bureau of Economic Research, Inc.
  2. 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.
  3. David H. Autor & David Dorn, 2009. "The Growth of Low Skill Service Jobs and the Polarization of the U.S. Labor Market," NBER Working Papers 15150, National Bureau of Economic Research, Inc.
  4. Kenneth A. Couch & Dana W. Placzek, 2010. "Earnings Losses of Displaced Workers Revisited," American Economic Review, American Economic Association, vol. 100(1), pages 572-89, March.
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