Arbeitspapier

Labor market polarization and international macroeconomic dynamics

During the last thirty years, labor markets in advanced economies were characterized by their remarkable polarization. As job opportunities in middle-skill occupations disappeared, employment opportunities concentrated in the highest- and lowest-wage occupations. I develop a two-country stochastic growth model that incorporates trade in tasks, rather than in goods, and reveal that this setup can replicate the observed polarization in the United States. This polarization was not a steady process: the relative employment share of each skill group fluctuated significantly over short-to-medium horizons. I show that the domestic and international aggregate shocks estimated within this framework can rationalize such employment dynamics while providing a good fit to the macroeconomic data. The model is estimated with employment data for different skills groups and trade-weighted macroeconomic indicators.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2013-17

Klassifikation
Wirtschaft
Trade and Labor Market Interactions
Open Economy Macroeconomics
Thema
labor market polarization
international business cycles
heterogeneous agents
stochastic growth
two-country models

Ereignis
Geistige Schöpfung
(wer)
Mandelman, Federico S.
Ereignis
Veröffentlichung
(wer)
Federal Reserve Bank of Atlanta
(wo)
Atlanta, GA
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Mandelman, Federico S.
  • Federal Reserve Bank of Atlanta

Entstanden

  • 2013

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