Working Paper: CEPR ID: DP952
Authors: Stephen Machin
Abstract: In this paper I document changes in the distribution of employment in the UK labour market in the 1980s. I use two longitudinal data sources, an industry-level panel data set between 1979 and 1990, and the panel component of the 1984 and 1990 establishment-level Workplace Industrial Relations Surveys. There is evidence of a considerable shift towards the increased relative use of what may be termed more skilled labour (i.e. towards non-manual work, away from manual work and towards more highly-educated labour). This seems to be principally driven by within-industry and establishment factors rather than by industry/establishment shifts in product demand. There is some support for the notion that manual employment saving changes, perhaps due to the increased use of computer technology and/or innovation, are of empirical importance.
Keywords: employment; composition; R&D intensity; innovation; computer use
JEL Codes: J01
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Technological changes (O33) | Increased relative use of skilled labor (J24) |
| Increased relative use of skilled labor (J24) | Increased share of nonmanual employment (J29) |
| Technological changes (O33) | Increased share of nonmanual employment (J29) |
| Technological changes (O33) | Increased share of nonmanual wage costs (J39) |
| Increased share of nonmanual employment (J29) | Increased share of nonmanual wage costs (J39) |
| Technological changes (O33) | Increased nonmanual employment in R&D intensive and innovative industries (O39) |