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Job polarisation and earnings inequality in Australia

Author

Listed:
  • Michael Coelli

    (Department of Economics, University of Melbourne)

  • Jeff Borland

    (Department of Economics, University of Melbourne)

Abstract

We investigate changes in the occupation structure of employment in Australia between 1966 and 2011, and the effect of these changes on the earnings distribution. There has been substantial growth in the employment share of high skill jobs throughout this period. In the 1980s and 1990s the share of middle skill jobs declined, and the share of low skill jobs rose – consistent with what has become known as job polarisation. In the 1970s and 2000s, however, employment shares of both middle and low skill jobs decreased. Changes in the structure of employment by occupation between 1966 and 2011 are consistent with the loss of jobs that were high in routine task intensity. We find that the changes in the occupational composition of employment, and associated changes in average earnings by occupation, have contributed significantly to growth in overall earnings inequality in Australia from the mid-1980s to the mid-2000s."

Suggested Citation

  • Michael Coelli & Jeff Borland, 2015. "Job polarisation and earnings inequality in Australia," Department of Economics - Working Papers Series 1192, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:1192
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    References listed on IDEAS

    as
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    Keywords

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    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

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