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The Decline of Routine Tasks, Education Investments, and Intergenerational Mobility

Author

Listed:
  • Patrick Bennett

    (University of Liverpool)

  • Kai Liu

    (University of Cambridge)

  • Kjell Salvanes

    (Norwegian School of Economics)

Abstract

How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in education investments of high school students, where they invest less in vocational-trades education and increasingly invest in college education. Our results highlight that labor demand changes impact inequality in the next generation. Low-ability and low-SES students are most responsive to task-biased demand changes and, as a result, intergenerational mobility in college education increases.

Suggested Citation

  • Patrick Bennett & Kai Liu & Kjell Salvanes, 2023. "The Decline of Routine Tasks, Education Investments, and Intergenerational Mobility," Upjohn Working Papers 23-382, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:23-382
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    References listed on IDEAS

    as
    1. Patrick Bennett & Richard Blundell & Kjell G. Salvanes, 2020. "A second chance? Labor market returns to adult education using school reforms," IFS Working Papers W20/28, Institute for Fiscal Studies.
    2. David H. Autor, 2019. "Work of the Past, Work of the Future," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 1-32, May.
    3. Bennett, Patrick & Blundell, Richard & Salvanes, Kjell Gunnar, 2020. "A Second Chance? Labor Market Returns to Adult Education Using School Reforms," Discussion Paper Series in Economics 14/2020, Norwegian School of Economics, Department of Economics.
    4. Bernt Bratsberg & Oddbjørn Raaum, 2012. "Immigration and Wages: Evidence from Construction," Economic Journal, Royal Economic Society, vol. 122(565), pages 1177-1205, December.
    5. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Local labor markets; routine tasks; task-biased demand change; human capital; college; intergenerational mobility;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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