Name File Type Size Last Modified
RTI-bypctile-1980.dta application/octet-stream 2.7 KB 10/11/2019 02:46:PM
dwg-byperc-1980-2005-czall.dta application/octet-stream 15.9 KB 10/11/2019 02:46:PM
dwg-byperc-1980-2005-czhigh-abovemean-RSHA.dta application/octet-stream 15.9 KB 10/11/2019 02:46:PM
dwg-byperc-1980-2005-czlow-abovemean-RSHA.dta application/octet-stream 15.9 KB 10/11/2019 02:46:PM
emp-bypctile-1980-2005-rewt-0-czall.dta application/octet-stream 4.5 KB 10/11/2019 02:46:PM
emp-bypctile-1980-2005-rewt-0-czhigh-abovemean-RSHA.dta application/octet-stream 4.5 KB 10/11/2019 02:46:PM
emp-bypctile-1980-2005-rewt-0-czlow-abovemean-RSHA.dta application/octet-stream 4.5 KB 10/11/2019 02:46:PM
emp-bypctile-1980-2005-rewt-1980-czall.dta application/octet-stream 4.5 KB 10/11/2019 02:46:PM
emp-bypctile-1980-2005-rewt-1980-czhigh-abovemean-RSHA.dta application/octet-stream 4.5 KB 10/11/2019 02:46:PM
emp-bypctile-1980-2005-rewt-1980-czlow-abovemean-RSHA.dta application/octet-stream 4.5 KB 10/11/2019 02:46:PM

Project Description

Summary:  View help for Summary We offer a unified analysis of the growth of low-skill service occupations between 1980 and 2005 and the concurrent polarization of US employment and wages. We hypothesize that polarization stems from 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 corroborate four implications of this hypothesis. Local labor markets that specialized in routine tasks 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J31 Wage Level and Structure; Wage Differentials
      R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics


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