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dc.contributor.authorBEVERELLI, Cosimo
dc.contributor.authorRUBÍNOVÁ, Stela
dc.contributor.authorSTOLZENBURG, Victor
dc.contributor.authorWOESSNER, Nicole
dc.date.accessioned2019-07-26T06:52:50Z
dc.date.available2019-07-26T06:52:50Z
dc.date.issued2019
dc.identifier.issn1028-3625
dc.identifier.urihttps://hdl.handle.net/1814/63704
dc.description.abstractThe increase in the share of high- and low-wage employment at the expense of middle-wage employment has been a striking feature of the US economy. We exploit differences across local labor markets in the exposure to Global Value Chains (GVCs), Chinese import competition and automation to study the drivers of this labor market polarization. Using value added trade data, we are able to correctly assign trade-related shocks to local labor markets, based on the source of value added. Across the 722 commuting zones that approximate US local labor markets, we find that employment polarization is mainly driven by their exposure to automation. GVCs lead to an increase in the employment share of relatively high-wage occupations (which we call ‘skill upgrading’), while import competition from China leads to an increase in the employment share of relatively low-wage occupations (which we call ‘skill downgrading’). Trade as a combination of the two thus may contribute to employment polarization but to a lesser extent than automation.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.publisherEuropean University Instituteen
dc.relation.ispartofseriesEUI RSCASen
dc.relation.ispartofseries2019/60en
dc.relation.ispartofseriesGlobal Governance Programme-356en
dc.relation.ispartofseries[Global Economics]en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectGlobal value chainsen
dc.subjectEmployment polarizationen
dc.subjectAutomationen
dc.subjectImport competitionen
dc.subjectF14en
dc.subjectF16en
dc.subjectE24en
dc.subjectJ31en
dc.subjectO33en
dc.subject.otherTrade, investment and international cooperation
dc.titleRevisiting the role of trade and automation in US labor market polarizationen
dc.typeWorking Paperen


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