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A Tale of Two Countries: Two Stories of Job Polarization

Author

Listed:
  • Julien Albertini
  • Fran{c{c}}ois Langot
  • Thepthida Sopraseuth

Abstract

The US and French job polarization appear similar based on employment shares by task. This study shows that they are different when per capita employment by task is used to identify the sources of these structural changes. We build a multi-sectorial general equilibrium model with search frictions, endogenous layoffs, and occupational choices to estimate the relative impact of TBTC (Task-Biased Technological Change) and LMI changes (Labor Market Institutions) on employment patterns. Our analysis suggests that job polarization is mainly driven by TBTC in the US, whereas LMI changes drive job polarization in France.

Suggested Citation

  • Julien Albertini & Fran{c{c}}ois Langot & Thepthida Sopraseuth, 2024. "A Tale of Two Countries: Two Stories of Job Polarization," Annals of Economics and Statistics, GENES, issue 154, pages 77-138.
    • Handle: RePEc:adr:anecst:y:2024:i:154:p:77-138
    DOI: 10.2307/48777887
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    References listed on IDEAS

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    1. Auray, Stéphane & Danthine, Samuel, 2010. "Bargaining frictions, labor income taxation, and economic performance," European Economic Review, Elsevier, vol. 54(6), pages 778-802, August.
    2. Stéphane Auray & Samuel Danthine & Markus Poschke, 2020. "Understanding the Determination of Severance Pay: Mandates, Bargaining, and Unions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(3), pages 1073-1111, July.
    3. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    4. repec:hal:spmain:info:hdl:2441/65dh65gjnn96rqgo52mg09a1uu is not listed on IDEAS
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    More about this item

    Keywords

    Job Polarization; Search and Matching; Labor Market Institutions; Task-Biased Technological Change;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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