Polarization and the growth of low-skill employment in Spanish Local Labor Markets

Davide Consoli and Mabel Sánchez-Barrioluengo

No 1628, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: This paper analyses the long-term transformations of local labor markets in fifty Spanish provinces to identify the extent and the drivers of employment polarization. We find that the decline of ‘routine’ mid-skill jobs is strongly driven by technology adoption and, also, that it is a strong predictor of the expansion of low-skill service employment. These results are not specific to large metropolitan areas, and are robust to various controls and instrumental variables that account for long-term industry specialisation. We also find a positive, albeit small, local multiplier effect of high-skilled workers on the demand for non-tradable service jobs.

Keywords: Local labor market; Polarization; Multiplier (search for similar items in EconPapers)
JEL-codes: J23 J24 R23 (search for similar items in EconPapers)
Date: 2016-11, Revised 2016-11
New Economics Papers: this item is included in nep-geo, nep-lma, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1628

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