Job Routinisation and Labour Market Inequality in Australia

Minrui Huang and Zhe (Jasmine) Jiang ()

No 2024-18, Working Papers from University of Sydney, School of Economics

Abstract: This paper examines how the degree of routinisation in Australian jobs influences the breakdown of employment, with a focus on how effects vary across different sectors, skill levels, and regions. Using census data from the Australian Bureau of Statistics, we document rising employment inequality in the past decade, verifying that technological change is associated with more overall employment for high-skill workers and less for those with low skills. At the same time, compared to jobs in the non-service sector, those in the service sector appear to be sheltered from the effects of automation and job routinisation, resulting in more service sector jobs for workers of both skill levels. Finally, from a spatial perspective, a high initial share of routine employment in a given region is associated with increases in both low-skill employment, owing to reallocation of the labour force into the service sector, and high-skill employment, owing to demand.

Date: 2024-08
New Economics Papers: this item is included in nep-ure
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