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Within and Between Firm Trends in Job Polarization: Role of Globalization and Technology

Author

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  • Pekkala Kerr, Sari
  • Maczulskij, Terhi
  • Maliranta, Mika

Abstract

This paper analyzes occupational polarization within and across firms using comprehensive matched employer-employee panel data from Finland. The occupational distribution in Finland has been polarizing over the last few decades, with mid-level production and clerical jobs eroding while low-skill service occupations and high-skill specialist occupations gain share. We find that the phenomenon is taking place within existing firms, as well as due to firm entry and exit. Service jobs are increasing through the entry-exit dynamics, but also via establishment level restructuring among continuing firms. Routine jobs, including mid-level plant operating jobs, are being destroyed both among continuing firms and at the entry-exit margin. The share of high-level occupations increases largely within continuing firms. Within the continuing firms the job polarization appears to be related to the trade of goods and services, as well as the outsourcing of tasks. Firms with high R&D expenditures and ICT use are more prone to lay off process and production workers.

Suggested Citation

  • Pekkala Kerr, Sari & Maczulskij, Terhi & Maliranta, Mika, 2016. "Within and Between Firm Trends in Job Polarization: Role of Globalization and Technology," ETLA Working Papers 41, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:wpaper:41
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Understanding productivity dynamics: A task taxonomy approach," Research Policy, Elsevier, vol. 47(1), pages 289-304.
    2. Heyman, Fredrik, 2016. "Job polarization, job tasks and the role of firms," Economics Letters, Elsevier, vol. 145(C), pages 246-251.

    More about this item

    Keywords

    Job polarization; offshoring; international trade; firm; establishment; technology; R&D; ICT;

    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
    • 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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