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The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market

Resource type
Authors/contributors
Title
The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market
Abstract
We offer a unified analysis of the growth of low-skill serviceoccupations between 1980 and 2005 and the concurrent polarizationof US employment and wages. We hypothesize that polarizationstems from the interaction between consumer preferences, whichfavor variety over specialization, and the falling cost of automatingroutine, codifiable job tasks. Applying a spatial equilibrium model, wecorroborate four implications of this hypothesis. Local labor marketsthat specialized in routine tasks differentially adopted informationtechnology, reallocated low-skill labor into service occupations(employment polarization), experienced earnings growth at the tailsof the distribution (wage polarization), and received inflows of skilledlabor.
Publication
American Economic Review
Volume
103
Issue
5
Pages
1553-97
Date
2013-08
Citation
Autor, D. H., & Dorn, D. (2013). The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market. American Economic Review, 103, 1553–1597.
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