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Routinization-Biased Technical Change, Globalization and Labor Market Polarization: Does Theory Fit the Facts?

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  • Jaewon Jung
  • Jean Mercenier

Abstract

There is now ample evidence that jobs and wages have been polarizing at the extremes of the skill distribution since the early 90s. Autor, Levy and Murnane (2003) have suggested that this might be due to technology substituting more easily for labor in performing routine rather than non-routine tasks. Other potential explanations include globalization. Active empirical research has now identified important stylized facts. The aim of this paper is to provide a theoretical exploration of alternative potential causes to this labor market polarization, and to identify which, if any, are consistent with the stylized facts.
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  • Jaewon Jung & Jean Mercenier, 2011. "Routinization-Biased Technical Change, Globalization and Labor Market Polarization: Does Theory Fit the Facts?," TEPP Working Paper 2011-10, TEPP.
    • Handle: RePEc:tep:teppwp:wp11-10
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    References listed on IDEAS

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    Cited by:

    1. Christian vom Lehn, 2015. "Labor Market Polarization, the Decline of Routine Work, and Technological Change: A Quantitative Evaluation," 2015 Meeting Papers 151, Society for Economic Dynamics.
    2. Satya P. Das & Anuradha Saha, 2015. "Growth of business services: A supply-side hypothesis," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 83-109, February.
    3. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: A Literature Review," JRC Working Papers on Digital Economy 2013-07, Joint Research Centre.
    4. Das, Satya P., 2012. "International trade and polarization in the labor market," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-44.
    5. Guido Matias Cortes, 2016. "Where Have the Middle-Wage Workers Gone? A Study of Polarization Using Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 63-105.
    6. Jung, Jaewon & Mercenier, Jean, 2014. "On modeling task, skill and technology upgrading effects of globalization with heterogeneous labor," Economic Modelling, Elsevier, vol. 39(C), pages 49-62.
    7. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: a Happy Marriage or a Dangerous Liaison? A Literature Review," JRC Research Reports JRC76143, Joint Research Centre.

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