Arbeitspapier

The growth of low skill service jobs and the polarization of the US labor market

We offer an integrated explanation and empirical analysis of the polarization of U.S. employment and wages between 1980 and 2005, and the concurrent growth of low skill service occupations. We attribute polarization to the interaction between consumer preferences, which favor variety over specialization, and the falling cost of automating routine, codifiable job tasks. Applying a spatial equilibrium model, we derive, test, and confirm four implications of this hypothesis. Local labor markets that were specialized in routine activities differentially adopted information technology, reallocated low skill labor into service occupations (employment polarization), experienced earnings growth at the tails of the distribution (wage polarization), and received inflows of skilled labor.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 7068

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Job, Occupational, and Intergenerational Mobility; Promotion
Technological Change: Choices and Consequences; Diffusion Processes
Thema
skill demand
job tasks
inequality
polarization
technological change
occupational choice
service occupations
Ungelernte Arbeitskräfte
Dienstleistungsberufe
Qualifikation
Anforderungsprofil
Arbeitsnachfrage
Automatisierung
Soziale Ungleichheit
Arbeitsmarkt
USA

Ereignis
Geistige Schöpfung
(wer)
Autor, David H.
Dorn, David
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Autor, David H.
  • Dorn, David
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2012

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