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That was then, this is now: Skills and Routinization in the 2000s

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  • Davide Consoli

    (INGENIO - Instituto de Gestión de la Innovación y del Conocimiento = Institute of Innovation and Knowledge Management - CSIC - Consejo Superior de Investigaciones Cientificas [España] = Spanish National Research Council [Spain] - UPV - Universitat Politècnica de València = Universitad Politecnica de Valencia = Polytechnic University of Valencia)

  • Francesco Rentocchini
  • Francesco Vona

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

We analyze changes in the skill content of occupations in US four-digit manufacturing industries between 1999 and 2010. Following a ‘task-based' approach, we elaborate a measure of Non-Routine skill intensity that captures the effects of industry exposure to both technology and international trade. The paper adds to previous literature by focusing on both the determinants of demand for Non-Routine skills and their effects on industry productivity and wages. The key finding is that import competition from low-wage countries has been a strong driver of demand for Non-Routine skills during the 2000s. Both technology and imports from low-wage countries are associated with mild cross-industry convergence in skill intensity while imports from high and medium wage countries are at root of persistent heterogeneity across occupational groups. We also find that higher Non-Routine skill intensity has had at best a modest effect on productivity and wages, except for high-skill occupations.

Suggested Citation

  • Davide Consoli & Francesco Rentocchini & Francesco Vona, 2014. "That was then, this is now: Skills and Routinization in the 2000s," SciencePo Working papers Main hal-03460412, HAL.
  • Handle: RePEc:hal:spmain:hal-03460412
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460412
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    More about this item

    Keywords

    Skills; Tasks; Routinization; Trade; Technology;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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