SNS Research Brief 28. Technological development and job polarisation

STUDIES IN SEVERAL OECD COUNTRIES, among others the US, Britain and Germany, show that there has been an increase in the share of high-wage jobs and low-wage jobs in relation to those jobs with more average wages in the last few decades. This publication describes a few theories about the reasons for this pattern. A possible explanation is the increased digitalisation. There has been an increase in the computerisation of the labour market as computer power has become cheaper. Moreover, an analysis is made of the relationship between technological development and job polarisation on the Swedish labour market since 1975. Finally, there is a presentation of different future scenarios and what the consequences of technological development might be in the future.

COMPUTERISATION IS AN IMPORTANT EXPLANATION FOR JOB POLARISATION IN SWEDEN. The study gives strong support for increased computerisation being an important explanation for Swedish job polarisation.

JOBS WITH ROUTINE TASKS ARE REPLACED BY COMPUTERS. Jobs in the middle of the wage distribution do, typically, include a large share of routine work tasks that can be done by computers. Thus, these jobs are the most likely ones to become fewer.

PROBLEM SOLVING AND SERVICES ARE MORE DIFFICULT TO COMPUTERISE. When it comes to jobs with abstract work tasks that require cognitive – intellectual – abilities, computers serve as a complement. There have not yet been any considerable effects of computerisation on service jobs that require social and emotional abilities.

AUTHORS Adrian Adermon, PhD in Economics, Uppsala University. E-mail: adrian.adermon@nek.uu.se.
Magnus Gustavsson, Associate Professor (Docent) of Economics , Uppsala University. E-post: magnus.gustavsson@nek.uu.se.