Technological change and labour market institutions and their effect on employment, wages, and inequality

Thesis

Technological change and labour market institutions (LMI) exert a major influence on the labour markets of developed economies. Routine-biased technological change (RBTC) has been linked to employment polarisation in numerous countries, while institutions such as unions and employment protections have been found to reduce inequalities between workers. However, much is still unknown about the labour market impact of technological change across countries and the interplay between technology and institutions. In this thesis, I integrate insights from labour economics and sociology to address some of the gaps in this literature. I investigate three closely linked research questions: how is routine intensity best measured and how does it vary between countries and over time? Under which conditions does RBTC lead to employment polarisation? And do robotisation and LMI contribute to the patterns that enable polarisation? Using data from the European Working Conditions Survey, the Luxembourg Income Study, and the International Federation of Robotics, I pursue these questions in a sample of OECD countries during the period from 1993 until 2016. First, I develop improved indices of occupational task content which show meaningful differences with established measures as well as across countries and over time. Secondly, I demonstrate that RBTC is associated with employment polarisation only in countries where routine occupations are concentrated in the middle of the wage hierarchy. Finally, my analyses suggest that robotisation has reduced the relative wages of routine manufacturing occupations and thus made employment polarisation less likely, particularly in countries with strong employment protections for temporary workers. The findings of this thesis advance the study of employment and wage changes in both economics and sociology, and illustrate the benefits of jointly analysing technological and institutional explanations for differences and changes in employment, wages, and inequality.

Authors: Haslberger, M

• DOI: 10.5287/ora-xvn5jvp0x
• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: University of Oxford
• Language: English
• Keywords: inequality; employment; labour market; technological change; power resource theory; occupations
• Subjects: Economics--Sociological aspects; Labor market