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Title: Spillovers from High-Skill Consumption to Low-Skill Labor Markets

Citation Type: Journal Article

Publication Year: 2013

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Abstract: The least-skilled workforce in the United States is disproportionally employed in the provision of time-intensive services that can be thought of as market substitutes for home production activities. At the same time, skilled workers, with their high opportunity cost of time, spend a larger fraction of their budget in these services. Given the skill asymmetry between consumers and providers in this market, product demand shifts-such as those arising when relative skilled wages increase-should boost relative labor demand for the least-skilled workforce. We estimate that this channel may explain one-third of the growth of employment of noncollege workers in low-skill services in the 1990s.

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Authors: Ragusa, Giuseppe; Mazzolari, Francesca

Periodical (Full): Review of Economics and Statistics

Issue: 1

Volume: 95

Pages: 74-86

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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