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Job Market Polarization and Employment Protection in Europe

Publication

Abstract

Although much attention has been paid to the polarization of national labor markets, with employment and wage growth occurring in both low- and high- but not middle-skill occupations, there is little consistent evidence on cross-country differences in this process. I analyze job polarization in 12 European countries using an occupational skill-intensity measure, which is independent of country-specific labor supply conditions.

Extensive north-south differences in the extent and skewness of polarization correspond to variation in economic conditions and to dissimilarities in employment protection.