Interindustry wage differentials, technology adoption, and job polarization

Myungkyu Shim, Hee Seung Yang

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Based on observations that high-wage industries in 1980 experienced more evident job polarization between 1980 and 2009, we hypothesize that the persistent structure of interindustry wage differentials leads to heterogeneity in job polarization across industries; as the relative price of ICT capital declines, firms respond to exogenous wage differentials by replacing routine workers with capital. Our empirical analysis shows that, during the last three decades, the annualized growth rate of ICT capital per worker increased by 0.34 percent and that of routine employment decreased by 0.41 percent in the U.S. industries that paid 10 percent higher wages in 1980.

Original languageEnglish
Pages (from-to)141-160
Number of pages20
JournalJournal of Economic Behavior and Organization
Volume146
DOIs
Publication statusPublished - 2018 Feb 1

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Industry
Polarization
Technology adoption
Inter-industry wage differentials
Wages
Workers
Wage differentials
Relative prices
Empirical analysis

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

Cite this

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Interindustry wage differentials, technology adoption, and job polarization. / Shim, Myungkyu; Yang, Hee Seung.

In: Journal of Economic Behavior and Organization, Vol. 146, 01.02.2018, p. 141-160.

Research output: Contribution to journalArticle

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