Zsofia Barany, Christian Siegel, 25 July 2018

Economists agree that structural transformation and job polarisation are both caused mainly by biased technological progress, but there is no consensus on the nature of these biases. The column uses US data to estimate the extent to which technological change is biased across sectors and across occupations. It finds that for improved labour market outcomes, policies targeting occupational choice for workers might be better than industrial policies to protect sectors of the economy.

Ryan Decker, John Haltiwanger, Ron Jarmin, Javier Miranda, 12 July 2018

Job reallocation is an important determinant of productivity. This column uses US data to show that a decline in the degree of job reallocation in response to shocks is behind the overall fall in the rate of reallocation over the past decades. Weakening responsiveness became a drag on aggregate productivity for high-tech businesses in the 2000s, but in other sectors the problem dates back to the 1980s. 

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