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Occupational Mobility of Routine Workers

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  • Maczulskij, Terhi

Abstract

This paper analyzes whether occupational polarization takes place within workers or due to changes in the composition of workers by using comprehensive panel data from Finland. The decomposition analysis shows that the decrease in mid-level routine occupations and the simultaneous increase in high-level abstract occupations is largely a within-worker phenomenon. In contrast, the share of low-skilled nonroutine manual tasks has largely increased through entry dynamics. Data on plant closures are used to identify involuntary separations from routine occupations. These results demonstrate a strong, uneven adjustment pattern, with routine cognitive workers being more able to move to abstract tasks and adjust with smaller wage costs than routine manual workers.

Suggested Citation

  • Maczulskij, Terhi, 2021. "Occupational Mobility of Routine Workers," ETLA Working Papers 87, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:wpaper:87
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    More about this item

    Keywords

    Job market polarization; Routine manual; Routine cognitive; Decomposition; Occupational mobility; Displacement;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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