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Title: Worker Reallocation across Occupations in the United States: 1971-2009

Citation Type: Miscellaneous

Publication Year: 2011

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Abstract: Has economic turbulence increased over the past decades? The question has received much attention butrelatively little empirical support. Using a consistent occupational classification together with the (March)CPS files from years 1971 to 2009, this paper examines two dimensions of worker reallocation acrossoccupations that are directly tied to economic turbulence: (i) the dynamics of total employment reallocatedacross occupations and (ii) the content of the reallocation process, as measured by the direction of flows ofworkers from middle-wage to lower- or higher-wage occupations. The data reveals a rise in net reallocationof unskilled workers, a decrease in that of skilled workers and an increasing gap between middle-wage andhigh-wage occupations. These findings are consistent with an increase in economic turbulence, taking theform of a polarization of the labor market.

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Authors: Lale, Etienne

Publisher: Sciences-Po Department of Economics

Data Collections: IPUMS USA

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