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Explaining Job Polarization: Routine-Biased Technological Change and Offshoring

American Economic Review 2014 104(8), 2509-2526 open access
This paper documents the pervasiveness of job polarization in 16 Western European countries over the period 1993–2010. It then develops and estimates a framework to explain job polarization using routine-biased technological change and offshoring. This model can explain much of both total job polarization and the split into within-industry and between-industry components.