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Lovely and lousy jobs

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Abstract

The phenomenon of 'job polarisation' is increasing inequality as the labour market splits into high- and low-wage work. According to Alan Manning, who coined the term a decade ago, we cannot ignore job polarisation - but with sensible policies, we can manage it. Aiming for greater equality in the distribution of human capital is as important as ever. The most compelling explanation for job polarisation lies in the nature of technical progress: machines and software programs have been replacing employees in many routine jobs in the middle of the income distribution. But as Manning explains, while technology will undoubtedly continue to displace humans in some tasks, there is no reason to think that the jobs affected will always be the middle-skill ones.

Suggested Citation

  • Alan Manning, 2013. "Lovely and lousy jobs," CentrePiece - The Magazine for Economic Performance 398, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepcnp:398
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    File URL: http://cep.lse.ac.uk/pubs/download/cp398.pdf
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    Keywords

    Labor Demand and Technology; Inequality;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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