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.

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