IDEAS home Printed from https://ideas.repec.org/p/egu/wpaper/1628.html
   My bibliography  Save this paper

Polarization and the growth of low-skill employment in Spanish Local Labor Markets

Author

Listed:
  • Davide Consoli
  • Mabel Sánchez-Barrioluengo

Abstract

This paper analyses the long-term transformations of local labor markets in fifty Spanish provinces to identify the extent and the drivers of employment polarization. We find that the decline of ‘routine’ mid-skill jobs is strongly driven by technology adoption and, also, that it is a strong predictor of the expansion of low-skill service employment. These results are not specific to large metropolitan areas, and are robust to various controls and instrumental variables that account for long-term industry specialisation. We also find a positive, albeit small, local multiplier effect of high-skilled workers on the demand for non-tradable service jobs.

Suggested Citation

  • Davide Consoli & Mabel Sánchez-Barrioluengo, 2016. "Polarization and the growth of low-skill employment in Spanish Local Labor Markets," Papers in Evolutionary Economic Geography (PEEG) 1628, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2016.
    • Handle: RePEc:egu:wpaper:1628
    as

    Download full text from publisher

    File URL: http://econ.geo.uu.nl/peeg/peeg1628.pdf
    File Function: Version October 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Todd Gabe & Richard Florida & Charlotta Mellander, 2012. "The Creative Class and the crisis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(1), pages 37-53.
    2. Autor, David H., 2013. "The "task approach" to labor markets : an overview," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(3), pages 185-199.
    3. Guy Michaels & Ferdinand Rauch & Stephen J Redding, 2019. "Task Specialization in U.S. Cities from 1880 to 2000," Journal of the European Economic Association, European Economic Association, vol. 17(3), pages 754-798.
    4. Allen J. Scott, 2010. "Space-Time Variations of Human Capital Assets Across U.S. Metropolitan Areas, 1980 to 2000," Economic Geography, Taylor & Francis Journals, vol. 86(3), pages 233-249, July.
    5. Zoltan J. Acs & Henri L. F. Groot & Peter Nijkamp (ed.), 2002. "The Emergence of the Knowledge Economy," Advances in Spatial Science, Springer, number 978-3-540-24823-1, december.
    6. Vona, Francesco & Consoli, Davide, 2009. "Innovation, human capital and earning distribution: towards a dynamic life-cycle approach," MPRA Paper 13032, University Library of Munich, Germany.
    7. Francesco Vona & Davide Consoli, 2015. "Innovation and skill dynamics: a life-cycle approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(6), pages 1393-1415.
    8. Francesco Vona & Giovanni Marin & Davide Consoli, 2019. "Measures, drivers and effects of green employment: evidence from US local labor markets, 2006–2014," Journal of Economic Geography, Oxford University Press, vol. 19(5), pages 1021-1048.
    9. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Job polarization, technological change and routinization: Evidence for Portugal," Labour Economics, Elsevier, vol. 51(C), pages 317-339.
    10. Dauth, Wolfgang, 2014. "Job polarization on local labor markets," IAB-Discussion Paper 201418, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Gregory, Terry & Salomons, Anna & Zierahn, Ulrich, 2016. "Racing With or Against the Machine? Evidence from Europe," VfS Annual Conference 2016 (Augsburg): Demographic Change 145843, Verein für Socialpolitik / German Economic Association.
    12. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    13. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    14. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    15. Adermon, Adrian & Gustavsson, Magnus, 2011. "Job Polarization and Task-Biased Technological Change: Sweden, 1975–2005," Working Paper Series, Center for Labor Studies 2011:11, Uppsala University, Department of Economics.
    16. repec:ehl:lserod:50482 is not listed on IDEAS
    17. repec:hal:spmain:info:hdl:2441/2lpvf5mlr48dkah5qda4hh4e9g is not listed on IDEAS
    18. Prados de la Escosura Leandro, 2003. "El progreso económico de España (1850-2000)," Books, Fundacion BBVA / BBVA Foundation, edition 1, number 201136, October.
    19. Moretti, Enrico & Thulin, Per, 2012. "Local Multipliers and Human Capital in the US and Sweden," Working Paper Series 914, Research Institute of Industrial Economics.
    20. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    21. James Harrigan & Ariell Reshef & Farid Toubal, 2016. "The March of the Techies: Technology, Trade, and Job Polarization in France, 1994-2007," Working Papers 2016-15, CEPII research center.
    22. Marchand, Joseph, 2012. "Local labor market impacts of energy boom-bust-boom in Western Canada," Journal of Urban Economics, Elsevier, vol. 71(1), pages 165-174.
    23. Marigee Bacolod & Bernardo S. Blum & William C. Strange, 2009. "Urban interactions: soft skills versus specialization," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 227-262, March.
    24. Gabriel Tortella, 1994. "Patterns of economic retardation and recovery in south-western Europe in the nineteenth and twentieth centuries," Economic History Review, Economic History Society, vol. 47(1), pages 1-21, February.
    25. Gray, Rowena, 2013. "Taking technology to task: The skill content of technological change in early twentieth century United States," Explorations in Economic History, Elsevier, vol. 50(3), pages 351-367.
    26. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The Geography of Trade and Technology Shocks in the United States," American Economic Review, American Economic Association, vol. 103(3), pages 220-225, May.
    27. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages 270-295, June.
    28. Salvatori, Andrea, 2018. "The anatomy of job polarisation in the UK," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 52(1), pages 1-8.
    29. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    30. Dan Black & Terra McKinnish & Seth Sanders, 2005. "The Economic Impact Of The Coal Boom And Bust," Economic Journal, Royal Economic Society, vol. 115(503), pages 449-476, April.
    31. Ron A. Boschma & Michael Fritsch, 2009. "Creative Class and Regional Growth: Empirical Evidence from Seven European Countries," Economic Geography, Taylor & Francis Journals, vol. 85(4), pages 391-423, October.
    32. Henry Renski & Jun Koo & Edward Feser, 2007. "Differences in Labor versus Value Chain Industry Clusters: An Empirical Investigation," Growth and Change, Wiley Blackwell, vol. 38(3), pages 364-395, September.
    33. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    34. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    35. Edward J. Malecki, 2012. "Regional Social Capital: Why it Matters," Regional Studies, Taylor & Francis Journals, vol. 46(8), pages 1023-1039, June.
    36. repec:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09iak49cp9p is not listed on IDEAS
    37. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    38. Brindusa Anghel & Sara Rica & Aitor Lacuesta, 2014. "The impact of the great recession on employment polarization in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(2), pages 143-171, August.
    39. Juan J. Dolado & Marcel Jansen & Florentino Felgueroso & Andrés Fuentes & Anita Wölfl, 2013. "Youth Labour Market Performance in Spain and its Determinants: A Micro-Level Perspective," OECD Economics Department Working Papers 1039, OECD Publishing.
    40. Ann Markusen & Greg Schrock, 2006. "The Distinctive City: Divergent Patterns in Growth, Hierarchy and Specialisation," Urban Studies, Urban Studies Journal Limited, vol. 43(8), pages 1301-1323, July.
    41. Concha Betrán, 2011. "Regional specialisation and industry location in the long run: Spain in the US mirror (1856-2002)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 5(3), pages 259-290, October.
    42. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    43. Vicente Donoso & V�ctor Mart�n & Asier Minondo, 2015. "Do Differences in the Exposure to Chinese Imports Lead to Differences in Local Labour Market Outcomes? An Analysis for Spanish Provinces," Regional Studies, Taylor & Francis Journals, vol. 49(10), pages 1746-1764, October.
    44. Allen J. Scott & Agostino Mantegna, 2009. "Human Capital Assets and Structures of Work in the US Metropolitan Hierarchy (An Analysis Based on the O*NET Information System)," International Regional Science Review, , vol. 32(2), pages 173-194, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Consoli, Davide & Marin, Giovanni & Rentocchini, Francesco & Vona, Francesco, 2023. "Routinization, within-occupation task changes and long-run employment dynamics," Research Policy, Elsevier, vol. 52(1).
    2. Maarten Goos & Melanie Arntz & Ulrich Zierahn & Terry Gregory & Stephanie Carretero Gomez & Ignacio Gonzalez Vazquez & Koen Jonkers, 2019. "The Impact of Technological Innovation on the Future of Work," JRC Working Papers on Labour, Education and Technology 2019-03, Joint Research Centre.
    3. David Popp & Francesco Vona & Myriam Grégoire-Zawilski & Giovanni Marin, 2024. "The Next Wave of Energy Innovation: Which Technologies? Which Skills?," Review of Environmental Economics and Policy, University of Chicago Press, vol. 18(1), pages 45-65.
    4. Davide Consoli & Fabrizio Fusillo & Gianluca Orsatti & Francesco Quatraro, 2021. "Skill endowment, routinisation and digital technologies: evidence from U.S. Metropolitan Areas," Industry and Innovation, Taylor & Francis Journals, vol. 28(8), pages 1017-1045, September.
    5. Davide Consoli & Francesco Vona & Francesco Rentocchini, 2016. "That was then, this is now: skills and routinization in the 2000s," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(5), pages 847-866.
    6. Goos, Maarten & Rademakers, Emilie & Röttger, Ronja, 2021. "Routine-Biased technical change: Individual-Level evidence from a plant closure," Research Policy, Elsevier, vol. 50(7).
    7. Nikolaos Terzidis & Raquel Ortega‐Argilés, 2021. "Employment polarization in regional labor markets: Evidence from the Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 971-1001, November.
    8. Consoli, Davide & Marin, Giovanni & Marzucchi, Alberto & Vona, Francesco, 2016. "Do green jobs differ from non-green jobs in terms of skills and human capital?," Research Policy, Elsevier, vol. 45(5), pages 1046-1060.
    9. Falck, Oliver & Heimisch-Roecker, Alexandra & Wiederhold, Simon, 2021. "Returns to ICT skills," Research Policy, Elsevier, vol. 50(7).
    10. Gregory, Terry & Salomons, Anna & Zierahn, Ulrich, 2016. "Racing With or Against the Machine? Evidence from Europe," VfS Annual Conference 2016 (Augsburg): Demographic Change 145843, Verein für Socialpolitik / German Economic Association.
    11. Cortes, Guido Matias & Salvatori, Andrea, 2019. "Delving into the demand side: Changes in workplace specialization and job polarization," Labour Economics, Elsevier, vol. 57(C), pages 164-176.
    12. Andrea Salvatori, 2018. "The anatomy of job polarisation in the UK," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-15, December.
    13. Marin, Giovanni & Vona, Francesco, 2023. "Finance and the reallocation of scientific, engineering and mathematical talent," Research Policy, Elsevier, vol. 52(5).
    14. Aepli, Manuel, 2019. "Technological change and occupation mobility: A task-based approach to horizontal mismatch," GLO Discussion Paper Series 361, Global Labor Organization (GLO).
    15. Thomsen, Stephan L, 2018. "Die Rolle der Computerisierung und Digitalisierung für Beschäftigung und Einkommen," Hannover Economic Papers (HEP) dp-645, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    16. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    17. Arntz, Melanie & Gregory, Terry & Zierahn, Ulrich, 2016. "ELS issues in robotics and steps to consider them. Part 1: Robotics and employment. Consequences of robotics and technological change for the structure and level of employment," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 146501.
    18. Sebastian Lago Raquel & Federico Biagi, 2018. "The Routine Biased Technical Change hypothesis: a critical review," JRC Research Reports JRC113174, Joint Research Centre.
    19. Janssen, Simon & Mohrenweiser, Jens, 2018. "The Shelf Life of Incumbent Workers during Accelerating Technological Change: Evidence from a Training Regulation Reform," IZA Discussion Papers 11312, Institute of Labor Economics (IZA).
    20. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.

    More about this item

    Keywords

    Local labor market; Polarization; Multiplier;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:egu:wpaper:1628. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deguunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.