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UID:21e4bd5fd4436f27044c735a0d556fb9
CATEGORIES:Seminars
CREATED:20181114T102354
SUMMARY:Eric Mengus - HEC Paris
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:Labor Market Polarization and the Great Divergence: Theory and Evidence\nAb
 stract: \nTwo of the most important features of advanced labor markets in t
 he past quarter century are labor market polarization and the great diverge
 nce. The first of these concerns the growth of jobs in high and low wage ca
 tegories and the disappearance of middle wage jobs. The second is an explic
 itly spatial theory about the intensification of development particularly a
 t the high end in large, already developed cities relative to smaller, less
  developed cities. This paper addresses how the two phenomena are interrela
 ted. The great divergence is typically contemplated in a two factor setting
  with skill-biased technical change. Labor market polarization is instead c
 onsidered in an explicitly three-factor setting, specifically rejecting the
  simpler framework. We develop a theory in which the driving forces of labo
 r market polarization alone give rise to both phenomena, building on Autor 
 and Dorn (2013), Davis and Dingel (2014) and Davis and Dingel (forthcoming)
 . Key to this is that the productivity advantages in large cities are biase
 d toward high skilled tasks, so that a uniform shock to technology leads to
  labor market polarization with a biased impact on cities of different size
 s, giving rise to the great divergence. We examine the model using detailed
  data for a sample of 117 French cities and find the patterns in the period
  1994-2015 accord well with the theory.\n
DTSTAMP:20260405T192610Z
DTSTART:20190325T163000Z
DTEND:20190325T180000Z
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