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Is There Job Polarization in Developing Economies? A Review and Outlook

Antonio Neto, Nanditha Mathew, Pierre Mohnen and Tania Treibich

No 9444, CESifo Working Paper Series from CESifo

Abstract: This paper analyses the evidence of job polarization in developing and emerging economies. We carry out an extensive literature review, revealing that job polarization in these countries is only incipient compared to other advanced economies. We then examine the possible moderating aspects explaining this job polarization paradox. Overall, the literature relates the lack of polarization to limited technology adoption, structural change, and the offshoring of routine, middle-earning jobs from advanced to developing economies. Furthermore, the limited technology adoption results from lower capabilities in those economies, including the insufficient supply of educated workers. Policies supporting technological development in these countries, therefore, need to address those labor constraints as well as create a safety net to support the workers harmed by such a transition. Finally, new microeconomic data and empirical analyses should be developed in order to guide evidence-based policymaking addressing those issues in developing and emerging economies.

Keywords: job polarization; technology adoption; tasks; developing countries (search for similar items in EconPapers)
JEL-codes: E24 J24 J63 O33 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-dev, nep-lma, nep-mac and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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