Biased Technological Change and Employment Reallocation

To study the drivers of the employment reallocation across sectors and occupations between 1960 and 2017 in the US we present a model where technology

evolves at the sector-occupation cell level. Drawing on key equations of the production side we infer technologies directly from the data. We assess the magnitude of neutral, sector-, and occupation-specific components in technological change and study their consequences for labour market outcomes in general equilibrium where occupational choice and demands for sectoral outputs change endogenously with technology. Our findings indicate a major role for occupation specific technological changes.