Working Paper: CEPR ID: DP15797
Authors: Fabio Cerina; Alessio Moro; Michelle Rendall
Abstract: We compare employment and wage polarization in the U.S. using different sample periods and the inclusion or not of agricultural occupations, reporting three main findings. First, a similar degree of employment polarization can emerge together or without wage polarization, depending on the sample period considered. Next, we show that removing agricultural occupations from the sample dramatically changes the results with respect to the case in which these are included: i) wage polarization emerges and the degree of employment polarization increases and ii) the timing of employment polarization changes, and some U-shape of changes in employment shares is observed before 1980.
Keywords: employment polarization; wage polarization; agricultural occupations
JEL Codes: E20; E21; J16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| inclusion of agricultural occupations (Q10) | observed polarization effects (C23) |
| removal of agricultural occupations (J43) | emergence of wage polarization (F66) |
| inclusion of agricultural occupations (Q10) | no observable wage polarization (J31) |
| exclusion of agricultural occupations (J43) | magnifies extent of employment polarization (J69) |
| employment polarization (J68) | wage polarization (J31) |
| technological changes in the agricultural sector (O33) | influences timing and degree of polarization (D72) |