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The Polarization of Employment in German Local Labor Markets

Author

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  • Charlotte Senftleben-König

    (Humboldt-Universitaet zu Berlin)

  • Hanna Wielandt

    (Humboldt-Universitaet zu Berlin)

Abstract

This paper analyzes the polarization of employment and wages in Germany between 1979 and 2006, focusing on the role of technological progress. We exploit spatial variation in the exposure to technological progress which arises due to initial regional specialization in routine task-intensive activities. We show that the occupational structure of labor markets that were particularly susceptible to computerization has polarized, as employment shifted from middle-skilled, routine clerical and production occupations to less-skilled non-routine manual and service occupations. We find this shift to be the main driver of employment polarization at the lower tail of the wage distribution. Occupational shifts are gender-specific, with gains in service employment being exclusively realized by female employees. We further show that technological change contributes to a dispersion of the wage structure, as employment gains in services are accompanied by significant wage losses. Creation Date: 2014-11-07

Suggested Citation

  • Charlotte Senftleben-König & Hanna Wielandt, "undated". "The Polarization of Employment in German Local Labor Markets," BDPEMS Working Papers 2014007, Berlin School of Economics.
    • Handle: RePEc:bdp:wpaper:2014007
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    2. Terry Gregory & A.M. Salomons & Ulrich Zierahn, 2016. "Racing With or Against the Machine? Evidence from Europe," Working Papers 16-05, Utrecht School of Economics.
    3. Jocelyn Maillard, 2021. "Automation, Offshoring and Employment Distribution in Western Europe," Working Papers halshs-03219118, HAL.
    4. Hanna Wielandt, 2015. "Employment Polarization and Immigrant Employment Opportunities," SFB 649 Discussion Papers SFB649DP2015-025, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    5. Maarten Goos & Melanie Arntz & Ulrich Zierahn & Terry Gregory & Stephanie Carretero Gomez & Ignacio Gonzalez Vazquez & Koen Jonkers, 2019. "The Impact of Technological Innovation on the Future of Work," JRC Working Papers on Labour, Education and Technology 2019-03, Joint Research Centre.
    6. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2019. "Exploring changes in the employment structure and wage inequality in Western Europe using the unconditional quantile regression," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(2), pages 249-304, May.
    7. John Hurley & Enrique Fernandez Macias & Martina Bisello & Carlos Vacas & Marta Fana, 2019. "European Jobs Monitor 2019: Shifts in the employment structure at regional level," JRC Research Reports JRC117824, Joint Research Centre.
    8. Martina Bisello & Marta Fana & Enrique Fernández-Macías & Sergio Torrejón Pérez, 2021. "A comprehensive European database of tasks indices for socio-economic research," JRC Working Papers on Labour, Education and Technology 2021-04, Joint Research Centre.
    9. Eduard Storm, 2022. "Task specialization and the Native‐Foreign Wage Gap," LABOUR, CEIS, vol. 36(2), pages 167-195, June.
    10. Arntz, Melanie & Gregory, Terry & Zierahn, Ulrich, 2016. "ELS issues in robotics and steps to consider them. Part 1: Robotics and employment. Consequences of robotics and technological change for the structure and level of employment," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 146501.

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    More about this item

    Keywords

    Job Tasks; Polarization; Technological Change; Service Occupations; Regional Labor Markets;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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