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Occupations at risk: The task content and job stability

  • Ljubica Nedelkoska

    ()

    (Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University Jena)

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    In the last few decades, Germany, similar to other developed countries, has been witnessing a sharp decline of the jobs that used to constitute the middle-class of the 1970s and the 1980s. This decline has been associated with the level to which jobs are codifiable. This is because, some argue, codifiable tasks are more prone to technological substitution and outsourcing than tacit tasks. This article empirically investigates two crucial aspects of the decline of codified jobs. First, it studies what happened to the workers in codified occupations in terms of unemployment, occupational change, and wages. Second, it revisits the hypothesis that code-based technologies are the major driver of this labour market shift. We find that job codification is associated with higher unemployment and higher occupational change. It is also associated with wage losses for the workers who left routinized jobs. We find however little evidence that code-based technologies were the driving factor behind these dynamics.

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    File URL: http://pubdb.wiwi.uni-jena.de/pdf/wp_2010_050.pdf
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    Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-050.

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    Date of creation: 24 Aug 2010
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    Handle: RePEc:jrp:jrpwrp:2010-050
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    1. 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.
    2. Batiz-Lazo, Bernardo & Reid, Robert J. K., 2008. "Evidence from the Patent Record on the Development of Cash Dispensing Technology," MPRA Paper 9461, University Library of Munich, Germany.
    3. Cowan, Robin & Foray, Dominique, 1997. "The Economics of Codification and the Diffusion of Knowledge," Industrial and Corporate Change, Oxford University Press, vol. 6(3), pages 595-622, September.
    4. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
    5. Dustmann, Christian & Ludsteck, Johannes & Schönberg, Uta, 2007. "Revisiting the German Wage Structure," IZA Discussion Papers 2685, Institute for the Study of Labor (IZA).
    6. Maarten Goos & Alan Manning & Anna Salomons, 2009. "Job Polarization in Europe," American Economic Review, American Economic Association, vol. 99(2), pages 58-63, May.
    7. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
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