The Role of Gender in Employment Polarization

We document that employment polarization in the 1980-2008 period in the U.S. is largely generated by women. For the latter, employment shares increase both at the bottom and at the top of the skill distribution, generating the typical U-shape polarization graph, while for men employment shares decrease in a similar fashion along the whole skill distribution. We show that a canonical model of skill-biased technological change augmented with a gender dimension, an endogenous market/home labor choice and a multi-sector environment accounts well for gender and overall employment polarization. The model also accounts for the absence of employment polarization during the 1960-1980 period, which is due to the at behavior of changes in women's employment shares along the skill distribution, and can reproduce the different evolution of employment shares across decades during the 1980-2008 period. The faster growth of skill-biased technological change since the 1980s accounts for a substantial part of the employment polarization generated by the model.