Lousy and lovely jobs: The rising polarization of work in Britain

M Goos, A Manning - The review of economics and statistics, 2007 - direct.mit.edu
The review of economics and statistics, 2007direct.mit.edu
This paper shows that the United Kingdom since 1975 has exhibited a pattern of job
polarization with rises in employment shares in the highest-and lowest-wage occupations.
This is not entirely consistent with the idea of skill-biased technical change as a hypothesis
about the impact of technology on the labor market. We argue that the “routinization”
hypothesis recently proposed by Autor, Levy, and Murnane (2003) is a better explanation of
job polarization, though other factors may also be important. We show that job polarization …
Abstract
This paper shows that the United Kingdom since 1975 has exhibited a pattern of job polarization with rises in employment shares in the highest- and lowest-wage occupations. This is not entirely consistent with the idea of skill-biased technical change as a hypothesis about the impact of technology on the labor market. We argue that the “routinization” hypothesis recently proposed by Autor, Levy, and Murnane (2003) is a better explanation of job polarization, though other factors may also be important. We show that job polarization can explain one-third of the rise in the log(50/10) wage differential and one-half of the rise in the log(90/50).
MIT Press