A1 Journal article (refereed)
Within and between firm trends in job polarization : the roles of globalization and technology (2020)

Kerr, S., Maczulskij, T., & Maliranta, M. (2020). Within and between firm trends in job polarization : the roles of globalization and technology. Journal of Economic Geography, 20(4), 1003-1039. https://doi.org/10.1093/jeg/lbz028

JYU authors or editors

Publication details

All authors or editors: Kerr, Sari; Maczulskij, Terhi; Maliranta, Mika

Journal or series: Journal of Economic Geography

ISSN: 1468-2702

eISSN: 1468-2710

Publication year: 2020

Volume: 20

Issue number: 4

Pages range: 1003-1039

Publisher: Oxford University Press

Publication country: United Kingdom

Publication language: English

DOI: https://doi.org/10.1093/jeg/lbz028

Publication open access: Not open

Publication channel open access:

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/73739


We analyze occupational polarization within and across firms using a census of matched employer-employee panel data from Finland in the period of 2000-2014. As in most industrialized countries, the Finnish occupational distribution has polarized over the last decades. Using decomposition analysis, we find that jobs involving low-level service tasks increase mostly through the entry dynamics, while the high-level abstract task share increases largely within continuing firms. Worker-level occupational mobility points to some skill upgrading within continuing firms, while labor force entry and retirement contribute the polarizing trend. Instrumental variables (IVs) regressions confirm that this occupational restructuring is affected by the globalization of economic activity, including trade in goods and services, offshoring and outsourcing. For example, firms that outsource tasks abroad are more prone to lay off production workers, while domestic outsourcing leads to a reduction of both cognitive and service employees.

Keywords: labour market; polarisation (social sciences); occupational structure; structural change; international market; outsourcing; globalisation; technological development

Free keywords: job polarization; firm; outsourcing; international trade; R&D; ICT

Contributing organizations

Ministry reporting: Yes

Reporting Year: 2020

JUFO rating: 3

Last updated on 2022-17-06 at 11:54