The price of polarization : estimating task prices under routine-biased technical change / Michael J. Böhm (Vancouver School of Economics, University of British Columbia, University of Bonn and IZA) ; IZA Institute of Labor Economics
VerfasserBöhm, Michael In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, December 2017
Elektronische Ressource
Umfang1 Online-Ressource (69 Seiten) : Diagramme
SerieDiscussion paper ; no. 11220
URNurn:nbn:de:hbz:5:2-145696 Persistent Identifier (URN)
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The price of polarization [0.53 mb]
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The debate about the impact of routine-biased technical change on wages revolves around the question whether occupational or overall wage distributions polarized. This paper instead argues that routine task prices should decline compared to abstract and manual task prices. I propose a new method, which exploits the sorting of workers into tasks and their associated wage growth in the Roy model, to estimate the changes in task prices under relatively weak assumptions. Empirical results for male workers in two U.S. datasets indicate that task prices polarized during the 1990s and 2000s. The estimates match the upper part of the wage distribution, and they are consistent with differences across countries and time periods in the lower part.