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Title: Routine-biased technological change and wages by education level: Occupational downgrading and displacement effects

Citation Type: Working Paper

Publication Year: 2021

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Abstract: Taking advantage of geographic (and time) variation in the proportion of routine occupations in the US, we study the impact of this variation on the wage rate of workers by educational group. Using individual data and a Bartik-type IV strategy, we show that not only non-college-educated workers but also, in the same proportion, workers with fewer than four years of college are negatively impacted by this routine-biased technological change. The latter skill group currently represents 30% of the US population. We show that only 10% to 20% of the impact on both educational groups is related to occupational and industrial downgrading (the composition eect) and that most of the wage impact occurs within industries and occupations, including manual service occupations. This is consistent with the displacement eect described in the theoretical literature on task-biased technological change and automation.

Url: https://thema.u-cergy.fr/IMG/pdf/2021-05.pdf

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Authors: Bosquet, Clément; Maarek, Paul; Moiteaux, Elliot

Series Title: THEMA Working Paper

Publication Number: 2021-05

Institution: THEMA

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Publisher Location: Cergy Paris Université, France

Data Collections: IPUMS USA, IPUMS CPS

Topics: Education, Labor Force and Occupational Structure

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