Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236221 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14190
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper analyzes whether occupational polarization takes place within workers or due to changes in the composition of workers by using comprehensive panel data from Finland. The decomposition analysis shows that the decrease in mid-level routine occupations and the simultaneous increase in high-level abstract occupations is largely a within-worker phenomenon. In contrast, the share of low-skilled nonroutine manual tasks has largely increased through entry dynamics. Data on plant closures are used to identify involuntary separations from routine occupations. These results demonstrate a strong, uneven adjustment pattern, with routine cognitive workers being more able to move to abstract tasks and adjust with smaller wage costs than routine manual workers.
Subjects: 
job market polarization
routine manual
routine cognitive
decomposition
occupational mobility
displacement
JEL: 
J23
J62
Document Type: 
Working Paper

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