Is There Job Polarization in Developing Economies? A Review and Outlook

Antonio Martins-Neto*, Nanditha Mathew, Pierre Mohnen, Tania Treibich

*Corresponding author for this work

Research output: Contribution to journal(Systematic) Review article peer-review

Abstract

In this paper we analyze the evidence of job polarization-the relative decline of mid-wage jobs-in developing and emerging economies. We carry out an extensive literature review, revealing that job polarization in these countries is only incipient compared to advanced economies. We then examine the possible moderating aspects explaining this lack of job polarization. We distinguish three groups of explanations: Limited technology adoption; structural change; and changes in the global value chains. Finally, we suggest new microeconomic data and empirical analyses that should be developed in order to guide evidence-based policy-making addressing those issues in developing and emerging economies.
Original languageEnglish
Article number008
Pages (from-to)259-288
Number of pages30
JournalWorld Bank Research Observer
Volume39
Issue number2
Early online date1 Aug 2023
DOIs
Publication statusPublished - 1 Aug 2024

JEL classifications

  • e24 - "Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital"
  • j24 - "Human Capital; Skills; Occupational Choice; Labor Productivity"
  • j63 - "Labor Turnover; Vacancies; Layoffs"
  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"

Keywords

  • job polarization
  • technology adoption
  • tasks
  • developing countries
  • BIASED TECHNOLOGICAL-CHANGE
  • MULTINATIONAL FIRMS
  • TECHNICAL CHANGE
  • WAGE INEQUALITY
  • EMPLOYMENT
  • TASKS
  • ADOPTION
  • DEMAND
  • CAPABILITIES
  • ALLOCATION

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