Can the Labor Demand Curve Explain Job Polarization?

Andreas Peichl and Martin Popp
Additional contact information
Martin Popp: Institute for Employment Research (IAB), Nuremberg, Germany

No 202221, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "In recent decades, many industrialized economies have witnessed a pattern of job polarization. While shifts in labor demand, namely routinization or offshoring, constitute conventional explanations for job polarization, there is little research on whether shifts in labor supply along the labor demand curve may equally result in job polarization. In this study, we assess the impact of labor supply shifts on job polarization. To this end, we determine unconditional wage elasticities of labor demand from a unique estimation of a profit-maximization model on linked employer-employee data from Germany. Unlike standard practice, we explicitly allow for variations in output and find that negative scale effects matter. Both for a skill- and a novel task-based division of the workforce, our elasticity estimates show that supply shifts from immigration and a decline in collective bargaining successfully explain occupational employment patterns during the 1990s." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; IAB-Open-Access-Publikation; Ausland; Auswirkungen; Berufsgruppe; Einwanderung; IAB-Linked-Employer-Employee-Datensatz; Tarifbindung; institutionelle Faktoren; Lohnelastizität; Lohnentwicklung; Niedriglohnland; outsourcing; produzierendes Gewerbe; qualifikationsspezifische Faktoren; Arbeitskräfteangebot; Arbeitskräftenachfrage; Tarifverhandlungen; technischer Wandel; Arbeitsmarktsegmentation; 1993-2016 (search for similar items in EconPapers)
JEL-codes: D22 J23 J31 L60 (search for similar items in EconPapers)
Pages: 75 pages
Date: 2022-08-17
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.48720/IAB.DP.2221

Related works:
Working Paper: Can the Labor Demand Curve Explain Job Polarization? (2022)
Working Paper: Can the Labor Demand Curve Explain Job Polarization? (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202221

DOI: 10.48720/IAB.DP.2221

Access Statistics for this paper

More papers in IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().