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Job Polarization and Structural Change

Barany, Zsofia L., Siegel, Christian (2018) Job Polarization and Structural Change. American Economic Journal: Macroeconomics, 10 (1). pp. 57-89. ISSN 1945-7707. E-ISSN 1945-7715. (doi:10.1257/mac.20150258)

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http://dx.doi.org/10.1257/mac.20150258

Abstract

We document that job polarization -contrary to the consensus- has started as early as the 1950s in the US: middle-wage workers have been losing both in terms of employment and average wage growth compared to low- and high-wage workers. Given that polarization is a long-run phenomenon and closely linked to the shift from manufacturing to services, we propose a structural change driven explanation, where we explicitly model the sectoral choice of workers. Our simple model does remarkably well not only in matching the evolution of sectoral employment, but also of relative wages over the past fifty years.

Item Type: Article
DOI/Identification number: 10.1257/mac.20150258
Uncontrolled keywords: Job Polarization, Structural Change, Roy model
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Christian Siegel
Date Deposited: 06 Apr 2017 19:33 UTC
Last Modified: 29 May 2019 18:55 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/61271 (The current URI for this page, for reference purposes)
Siegel, Christian: https://orcid.org/0000-0002-1686-8686
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