Labor Market Polarization and The Great Urban Divergence

Donald R. Davis, Eric Mengus and Tomasz Michalski

No 14623, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Labor market polarization is among the most important features in recent decades of advanced country labor markets. Yet key spatial aspects of this phenomenon remain under- explored. We develop four key facts that document the universality of polarization, a city-size difference in the shock magnitudes, a skew in the types of middle-paid jobs lost, and the role of polarization in the great urban divergence. Existing theories cannot account for these facts. Hence we develop a parsimonious theoretical account that does so by integrating elements from the literatures on labor market polarization and systems of cities with heterogeneous labor in spatial equilibrium.

Keywords: Labor market polarization; System of cities; Inequality (search for similar items in EconPapers)
JEL-codes: J21 R12 R13 (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Labor market polarization and the great urban divergence (2026)
Working Paper: Labor Market Polarization and the Great Urban Divergence (2024)
Working Paper: Labor Market Polarization and the Great Urban Divergence (2024)
Working Paper: Labor Market Polarization and The Great Urban Divergence (2020)
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