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Skills, technical change and local labor markets: evidence from France 1990-2011

Author

Listed:
  • P. CHARNOZ

    (RITM (Université Paris Sud), Crest et Insee)

  • M. ORAND

    (Insee)

Abstract

A skill-biased labor demand shift occurred in France, as well as other developed economies, over the last 20 years. We test one of the main hypothesis that explain this particular shift : a skill-biased technical change driven by the dissemination of Information and Communication Technologies and the automatisation of routine jobs, leading to their disappearance in favor of high-skilled jobs and low-skilled service jobs. Using a theoretical model developed by Autor and Dorn (2013), based on the analysis of the employment structure of local labor markets to identify national effects of technical change, we find evidence of a link between technical change and the 1990-2011 evolution of the labor force in France. In particular, we find that the low-skilled jobs switch from routine jobs to service jobs or unemployment. We also find that the labor demand shift interacts with a spatial functional specialization. These results are robust to the introduction of alternative hypothesis, such as globalization and international trade growth, or demographic changes.

Suggested Citation

  • P. Charnoz & M. Orand, 2017. "Skills, technical change and local labor markets: evidence from France 1990-2011," Documents de Travail de l'Insee - INSEE Working Papers g2017-07, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:g2017-07
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    File URL: https://www.bnsp.insee.fr/ark:/12148/bc6p06zrf6n/f1.pdf
    File Function: Document de travail de la DESE numéro G2017/07
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    More about this item

    Keywords

    technical change; automation; local labor markets;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • 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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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