Data and Codes for Offshoring, Automation, Low-Skilled Immigration and Labor Market Polarization

Principal Investigator(s):  View help for Principal Investigator(s) Federico S. Mandelman, Federal Reserve Bank of Atlanta; Andrei Zlate, Board of Governors of the Federal Reserve System

Version:  View help for Version V1

Name File Type Size Last Modified
APX10_case_A_figures.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 204.9 KB 10/23/2020 03:32:PM
APX10_case_B_figures.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 205.3 KB 10/23/2020 03:32:PM
Krusestdif.mod text/plain 20.4 KB 10/23/2020 03:32:PM
KrusestdifH.mod text/plain 20.4 KB 10/23/2020 03:32:PM
KrusestdifH_histdec.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 480.4 KB 10/23/2020 03:32:PM
Krusestdif_histdec.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 483 KB 10/23/2020 03:32:PM
aejdataFbplus.m text/x-matlab 134.6 KB 10/23/2020 03:32:PM
historicdec4.m text/x-matlab 4.7 KB 10/23/2020 03:32:PM
stoch_simul.m text/x-matlab 9.6 KB 10/23/2020 03:32:PM

Project Description

Summary:  View help for Summary
We show that the observed polarization of employment toward the high- and low-skill occupations disappears when only native workers are considered. Instead, low-skilled immigration explains employment growth at the low tail of the skill distribution. Moreover, while employment rose, wages remained subdued in low-skill occupations. A data-disciplined structural model accounts for this evidence: Offshoring and automation negatively affect middle-skill occupations but enhance employment and wages for the high-skilled. Low-skill employment is sheltered from offshoring and automation, as it consists of manual, non-tradable services. However, low-skilled immigration depresses low-skill wages and encourages native workers to move up along the skill ladder through training.

Scope of Project

Subject Terms:  View help for Subject Terms [labor market polarization; , Offshoring; automation; international labor migration; labor market polarization; , automation; international labor migration; ]
JEL Classification:  View help for JEL Classification
      F16 Trade and Labor Market Interactions
      F22 International Migration
      F41 Open Economy Macroeconomics
Geographic Coverage:  View help for Geographic Coverage USA


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Published Versions

V1 [2021-12-27]

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