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Seoul Journal of Economics - Vol. 26 , No. 3
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[ Article ]
Seoul Journal of Economics - Vol. 26, No. 3, pp. 361-381
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 31 Aug 2013
Received 26 Dec 2012 Revised 23 Jul 2013 Accepted 26 Jul 2013

Technical Change, Heterogeneity in Skill Demand, and Employment Polarization
Sung-min Kim ; Jin-tae Hwang
Research Fellow, Korea Insurance Research Institute, 35-4, Yoido-dong, Youngdeungpo-gu, Seoul 150-600, Korea, Tel: 02-3775-9024 (jt0813@kiri.or.kr)
Part-time Lecturer, Department of Economics, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 136-701, Korea, Tel: 02-3290-2200 (sm0910@korea.ac.kr)

JEL Classification: J21, J24, O30

Abstract

We explore how the rapid adoption of computer-related assets affects the recent polarization of employment in the U.S. labor market, which is inconsistent with the skill-biased technological change hypothesis. Similar to Goos and Manning (2007), we show that the job polarization could be explained by the routinization hypothesis of Autor, Levy, and Murnane (2003). Our empirical analyses confirm that the newly adopted computer-related capitals change the demands for three types of skilled workers heterogeneously, leading to a polarization in employment structure.

Keywords: Computerization, Skill Demand, Polarization
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