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Title: Disappearing Jobs and Displaced Workers: Does Education Matter?
Citation Type: Conference Paper
Publication Year: 2019
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Abstract: This paper exploits state and time variations in the U.S. Current Population Survey for the years 1983-2016 to examine the extent to which job polarization can account for the widening gap in labour force participation rates by education. The use of the Bartik shift-share instrument is a new method in the US literature used to isolate exogenous shocks to labour demand for middle-skill workers. Estimation by 2SLS suggests that the decline in the employment share of middle-skill occupations has had an economically and statistically significant effect on the labour force participation differential by education. In fact, the econometric evidence indicates that much of the observed divergence in participation rates since 1983 can be accounted for by job polarization. On the other hand, growth in alternative job sectors could only marginally compensate for those effects.
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Authors: Hobler, Stephan
Conference Name: The Carroll Round at Georgetown University
Publisher Location: Washington, DC
Data Collections: IPUMS CPS
Topics: Education, Labor Force and Occupational Structure
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