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Polarization of the labour market: mainly driven by technological change [video]

Date:03 March 2017
Gaaitzen de Vries
Gaaitzen de Vries

On Thursday March 2, Gaaitzen de Vries (assistant professor at the University of Groningen and fellow of the Groningen Growth and Development Centre) gave a lecture in the widely watched World Trade Organization's Trade Dialogues Lectures.

During past decades, labour markets in advanced countries polarized as employment in low- and high-wage jobs increased relative to employment in jobs that used to be in the middle of the wage distribution. In joint research with Laurie Reijnders, a novel global supply chain approach is used to disentangle the role of trade and technology in accounting for job polarization. Quantitatively technological change dominates the effect of trade in accounting for changes in the job structure. The key role of technological change in driving labour market developments needs to be recognized and prioritized by policy makers.

For a short overview watch the video below. Click here for the full lecture.