IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v74y2024i2p221-254.html
   My bibliography  Save this article

Technology and Skill Demand: Labor Market Polarization in European Countries

Author

Listed:
  • Martin Labaj

    (University of Economics in Bratislava, Slovakia)

  • Matej Vitalos

    (University of Economics in Bratislava, Slovakia)

Abstract

technological change. In particular, it studies the relationship between displacement and reinstatement effects associated with automation and new tasks on the one hand and the demand for skills on the other. The analysis focuses on a group of advanced European countries and provides robust empirical evidence that technological progress leads to labor market polarization, as the tasks created by new technologies seem to be more suitable for high- and low-skilled workers. In addition to this novel finding of the reinstatement-driven hollowing out of the middle class, we confirm that automation contributes to top-bottom inequality. We also document that men and women are disproportionately affected by displacement and reinstatement technologies, and show that the labor market polarization is strongly associated with middle-aged cohorts of workers.

Suggested Citation

  • Martin Labaj & Matej Vitalos, 2024. "Technology and Skill Demand: Labor Market Polarization in European Countries," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 74(2), pages 221-254, May.
    • Handle: RePEc:fau:fauart:v:74:y:2024:i:2:p:221-254
    as

    Download full text from publisher

    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1534
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    technological change; displacement; reinstatement; skill demand; labor market polarization;
    All these keywords.

    JEL classification:

    • 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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:74:y:2024:i:2:p:221-254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.