Can the Labor Demand Curve Explain Job Polarization?

Autor: Andreas Peichl, Martin Popp
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Martin Popp
DOI: 10.48720/iab.dp.2221
Popis: In recent decades, many industrialized economies have witnessed a pattern of jobpolarization. While shifts in labor demand, namely routinization or offshoring, constituteconventional explanations for job polarization, there is little research on whether shifts inlabor supply along the labor demand curve may equally result in job polarization. In thisstudy, we assess the impact of labor supply shifts on job polarization. To this end, wedetermine unconditional wage elasticities of labor demand from a unique estimation of aprofit-maximization model on linked employer-employee data from Germany. Unlikestandard practice, we explicitly allow for variations in output and find that negative scaleeffects matter. Both for a skill- and a novel task-based division of the workforce, ourelasticity estimates show that supply shifts from immigration and a decline in collectivebargaining successfully explain occupational employment patterns during the 1990s.
IAB-Discussion Paper
Databáze: OpenAIRE