IDEAS home Printed from https://ideas.repec.org/p/hal/spmain/hal-03567377.html
   My bibliography  Save this paper

Biased Technological Change and Employment Reallocation

Author

Listed:
  • Zsofia Barany

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Christian Siegel

    (University of Kent [Canterbury])

Abstract

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 labor 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.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Zsofia Barany & Christian Siegel, 2018. "Biased Technological Change and Employment Reallocation," SciencePo Working papers Main hal-03567377, HAL.
    • Handle: RePEc:hal:spmain:hal-03567377
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03567377
    as

    Download full text from publisher

    File URL: https://sciencespo.hal.science/hal-03567377/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Miklós Koren & Silvana Tenreyro, 2007. "Volatility and Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 243-287.
    2. Daron Acemoglu & Pascual Restrepo, 2019. "Automation and New Tasks: How Technology Displaces and Reinstates Labor," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 3-30, Spring.
    3. Francesca Mazzolari & Giuseppe Ragusa, 2013. "Spillovers from High-Skill Consumption to Low-Skill Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 74-86, March.
    4. Timo Boppart, 2014. "Structural Change and the Kaldor Facts in a Growth Model With Relative Price Effects and Non‐Gorman Preferences," Econometrica, Econometric Society, vol. 82, pages 2167-2196, November.
    5. Francisco J Buera & Joseph P Kaboski & Richard Rogerson & Juan I Vizcaino, 2022. "Skill-Biased Structural Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(2), pages 592-625.
    6. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    7. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    8. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 2001. "Beyond Balanced Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 869-882.
    9. Alan Manning, 2004. "We Can Work It Out: The Impact of Technological Change on the Demand for Low‐Skill Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 581-608, November.
    10. L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
    11. Daron Acemoglu & Veronica Guerrieri, 2008. "Capital Deepening and Nonbalanced Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 467-498, June.
    12. Georg Duernecker & Berthold Herrendorf, 2022. "Structural Transformation of Occupation Employment," Economica, London School of Economics and Political Science, vol. 89(356), pages 789-814, October.
    13. 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.
    14. Guy Michaels & Ashwini Natraj & John Van Reenen, 2010. "Has ICT Polarized Skill Demand? Evidence from Eleven Countries over 25 Years," CEP Discussion Papers dp0987, Centre for Economic Performance, LSE.
    15. Aum, Sangmin & Lee, Sang Yoon (Tim) & Shin, Yongseok, 2018. "Computerizing industries and routinizing jobs: Explaining trends in aggregate productivity," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 1-21.
    16. 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.
    17. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    18. Berthold Herrendorf & Christopher Herrington & Ákos Valentinyi, 2015. "Sectoral Technology and Structural Transformation," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 104-133, October.
    19. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    20. Zsófia L. Bárány & Christian Siegel, 2018. "Job Polarization and Structural Change," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 57-89, January.
    21. Francesco Caselli & Wilbur John Coleman II, 2001. "The U.S. Structural Transformation and Regional Convergence: A Reinterpretation," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 584-616, June.
    22. 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.
    23. Guy Michaels & Ashwini Natraj & John Van Reenen, 2014. "Has ICT Polarized Skill Demand? Evidence from Eleven Countries over Twenty-Five Years," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 60-77, March.
    24. Aurelio Bruzzo, 2018. "Recenti iniziative europee ed italiane per la valorizzazione del patrimonio culturale," Working Papers 2018127, University of Ferrara, Department of Economics.
    25. 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.
    26. Mr. Sergio Rebelo & Ms. Piyabha Kongsamut & Danyang Xie, 2001. "Beyond Balanced Growth," IMF Working Papers 2001/085, International Monetary Fund.
    27. repec:hal:spmain:info:hdl:2441/4t83lre9hm91sq006n4940n19s is not listed on IDEAS
    28. Lee, Tim & Shin, Yongseok, 2017. "Horizonatal and Vertical Polarization: Task-Specific Technological Change in a Multi-Sector Economy," TSE Working Papers 17-800, Toulouse School of Economics (TSE).
    29. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 2001. "Beyond Balanced Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 869-882.
    30. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
    31. Alan Manning, 2004. "We Can Work It Out: the Impact of Technological Change on the Demand for Low Skill Workers," CEP Discussion Papers dp0640, Centre for Economic Performance, LSE.
    32. Atish R. Ghosh & Holger C. Wolf, 1997. "Geographical and Sectoral Shocks in the U.S. Business Cycle," NBER Working Papers 6180, National Bureau of Economic Research, Inc.
    33. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
    34. Zsófia L. Bárány & Christian Siegel, 2018. "Job Polarization and Structural Change," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 57-89, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Werner Pena & Christian Siegel, 2023. "Routine-biased technical change, structure of employment, and cross-country income differences," Studies in Economics 2301, School of Economics, University of Kent.
    2. Cnossen, Femke & Piracha, Matloob & Tchuente, Guy, 2021. "Learning the Right Skill: The Returns to Social, Technical and Basic Skills for Middle-Educated Graduates," GLO Discussion Paper Series 979, Global Labor Organization (GLO).
    3. Arntz , Melanie & Findeisen, Sebastian & Maurer, Stephan & Schlenker, Oliver, 2024. "Are We Yet Sick of New Technologies? The Unequal Health Effects of Digitalization," CEPR Discussion Papers 18913, C.E.P.R. Discussion Papers.
    4. Antonio Martins-Neto & Nanditha Mathew & Pierre Mohnen & Tania Treibich, 2024. "Is There Job Polarization in Developing Economies? A Review and Outlook," The World Bank Research Observer, World Bank, vol. 39(2), pages 259-288.
    5. Daron Acemoglu & Pascual Restrepo, 2022. "Tasks, Automation, and the Rise in U.S. Wage Inequality," Econometrica, Econometric Society, vol. 90(5), pages 1973-2016, September.
    6. Michael J Böhm & Terry Gregory & Pamela Qendrai & Christian Siegel, 2021. "Demographic change and regional labour markets," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(1), pages 113-131.
    7. Wang, Ting & Zhang, Yi & Liu, Chun, 2024. "Robot adoption and employment adjustment: Firm-level evidence from China," China Economic Review, Elsevier, vol. 84(C).
    8. Náplava Radek, 2019. "Changing structure of Employment in Europe: Polarization Issue," Review of Economic Perspectives, Sciendo, vol. 19(4), pages 307-318, December.
    9. Rob Davies & Dirk van Seventer, 2020. "Labour market polarization in South Africa: A decomposition analysis," WIDER Working Paper Series wp-2020-17, World Institute for Development Economic Research (UNU-WIDER).
    10. Yang Shen, 2024. "Future jobs: analyzing the impact of artificial intelligence on employment and its mechanisms," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-33, April.

    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. Zsófia L. Bárány & Christian Siegel, 2018. "Job Polarization and Structural Change," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 57-89, January.
    2. Barany, Zsofia L. & Siegel, Christian, 2017. "Disentangling Occupation- and Sector-specific Technological Change," Economics Series 331, Institute for Advanced Studies.
    3. repec:hal:spmain:info:hdl:2441/7vl4otetog8c6aaomlbfjid6fp is not listed on IDEAS
    4. repec:spo:wpmain:info:hdl:2441/7vl4otetog8c6aaomlbfjid6fp is not listed on IDEAS
    5. Zsofia Barany & Christian Siegel, 2021. "Engines of sectoral labor productivity growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 304-343, January.
    6. repec:spo:wpmain:info:hdl:2441/4he5e8ba3929rhrgcti3so9af is not listed on IDEAS
    7. Zsofia Barany & Christian Siegel, 2015. "Job Polarization and Structural Change," Working Papers hal-03459762, HAL.
    8. repec:spo:wpecon:info:hdl:2441/30j1vvprab87kpl0hore4b2sv1 is not listed on IDEAS
    9. repec:hal:spmain:info:hdl:2441/30j1vvprab87kpl0hore4b2sv1 is not listed on IDEAS
    10. repec:spo:wpmain:info:hdl:2441/30j1vvprab87kpl0hore4b2sv1 is not listed on IDEAS
    11. repec:hal:wpspec:info:hdl:2441/30j1vvprab87kpl0hore4b2sv1 is not listed on IDEAS
    12. repec:hal:spmain:info:hdl:2441/4he5e8ba3929rhrgcti3so9af is not listed on IDEAS
    13. Zsofia Barany & Christian Siegel, 2015. "Job Polarization and Structural Change," SciencePo Working papers hal-03459762, HAL.
    14. Gallipoli, Giovanni & Makridis, Christos A., 2018. "Structural transformation and the rise of information technology," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 91-110.
    15. Georg Duernecker & Berthold Herrendorf, 2022. "Structural Transformation of Occupation Employment," Economica, London School of Economics and Political Science, vol. 89(356), pages 789-814, October.
    16. Bárány, Zsófia L. & Siegel, Christian, 2020. "Biased technological change and employment reallocation," Labour Economics, Elsevier, vol. 67(C).
    17. Fierro, Luca Eduardo & Caiani, Alessandro & Russo, Alberto, 2022. "Automation, Job Polarisation, and Structural Change," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 499-535.
    18. repec:spo:wpmain:info:hdl:2441/4t83lre9hm91sq006n4940n19s is not listed on IDEAS
    19. repec:hal:spmain:info:hdl:2441/4t83lre9hm91sq006n4940n19s is not listed on IDEAS
    20. Julieta Caunedo & David Jaume & Elisa Keller, 2023. "Occupational Exposure to Capital-Embodied Technical Change," American Economic Review, American Economic Association, vol. 113(6), pages 1642-1685, June.
    21. Lee, Tim & Shin, Yongseok, 2017. "Horizonatal and Vertical Polarization: Task-Specific Technological Change in a Multi-Sector Economy," TSE Working Papers 17-800, Toulouse School of Economics (TSE).
    22. Sevinç, Orhun, 2017. "Skill-biased technical change and Labor market polarization:the role of skill heterogeneity within occupations," LSE Research Online Documents on Economics 86147, London School of Economics and Political Science, LSE Library.
    23. Chen, Chaoran, 2020. "Capital-skill complementarity, sectoral labor productivity, and structural transformation," Journal of Economic Dynamics and Control, Elsevier, vol. 116(C).
    24. Zsófia L. Bárány & Christian Siegel, 2018. "Job Polarization and Structural Change," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 57-89, January.
    25. Pena, Werner & Siegel, Christian, 2023. "Routine-biased technical change, structure of employment, and cross-country income differences," CEPR Discussion Papers 18366, C.E.P.R. Discussion Papers.
    26. Náplava Radek, 2019. "Changing structure of Employment in Europe: Polarization Issue," Review of Economic Perspectives, Sciendo, vol. 19(4), pages 307-318, December.
    27. 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.
    28. Leonardi, Marco, 2010. "The Effect of Product Demand on Inequality: Evidence from the US and the UK," IZA Discussion Papers 5011, Institute of Labor Economics (IZA).
    29. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    30. Diego A. Comin & Ana Danieli & Martí Mestieri, 2020. "Income-driven Labor Market Polarization," NBER Working Papers 27455, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    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:hal:spmain:hal-03567377. 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: Contact - Sciences Po Departement of Economics (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.