Skip to main content
Kent Academic Repository

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) (KAR id:61271)


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: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Christian Siegel
Date Deposited: 06 Apr 2017 19:33 UTC
Last Modified: 10 Dec 2022 13:44 UTC
Resource URI: (The current URI for this page, for reference purposes)

University of Kent Author Information

  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.