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Labor Market Polarization and the Great Urban Divergence

Donald Davis, Eric Mengus and Tomasz Michalski
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Donald Davis: Columbia University [New York]
Tomasz Michalski: HEC Paris - Ecole des Hautes Etudes Commerciales

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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; Great Urban Divergence; System of Cities; Inequality (search for similar items in EconPapers)
Date: 2024-06-28
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Working Paper: Labor Market Polarization and the Great Urban Divergence (2024) Downloads
Working Paper: Labor Market Polarization and The Great Urban Divergence (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04759262

DOI: 10.2139/ssrn.4879815

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