Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201256 
Year of Publication: 
2016
Series/Report no.: 
ETLA Working Papers No. 41
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
This paper analyzes occupational polarization within and across firms using comprehensive matched employer-employee panel data from Finland. The occupational distribution in Finland has been polarizing over the last few decades, with mid-level production and clerical jobs eroding while low-skill service occupations and high-skill specialist occupations gain share. We find that the phenomenon is taking place within existing firms, as well as due to firm entry and exit. Service jobs are increasing through the entry-exit dynamics, but also via establishment level restructuring among continuing firms. Routine jobs, including mid-level plant operating jobs, are being destroyed both among continuing firms and at the entry-exit margin. The share of high-level occupations increases largely within continuing firms. Within the continuing firms the job polarization appears to be related to the trade of goods and services, as well as the outsourcing of tasks. Firms with high R&D expenditures and ICT use are more prone to lay off process and production workers.
Subjects: 
Job polarization
offshoring
international trade
firm
establishment
technology
R&D
ICT
JEL: 
J24
J31
O33
Document Type: 
Working Paper

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