The great reversal in the demand for skill and cognitive tasks

This paper argues that several of the poor labor market outcomes observed in the Great Recession can be traced back to a change in the demand pattern for skilled workers that started with the tech bust of 2000. In particular, we show that around the year 2000, the demand for cognitive tasks underwen...

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Bibliographic Details
Published in:	Journal of labor economics 2016, Vol.34 (S1), p.S199-S247
Main Authors:	Beaudry, Paul, Green, David A, Sand, Benjamin M
Format:	Article
Language:	eng
Subjects:	Arbeitskräftebedarf Bildungsabschluss Cognitive ability Economic crisis Hoch Qualifizierter Kognitive Kompetenz Labor economics Labour economics Niedrig Qualifizierter Qualifikationsanforderung Qualifikationsbedarf Qualifikationsniveau Qualifikationswandel Recessions Skilled workers Studies Unterwertige Beschäftigung USA Überqualifikation
Online Access:	Get full text
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Summary:	This paper argues that several of the poor labor market outcomes observed in the Great Recession can be traced back to a change in the demand pattern for skilled workers that started with the tech bust of 2000. In particular, we show that around the year 2000, the demand for cognitive tasks underwent a reversal. In response, highskilled workers moved down the occupational ladder and increasingly displaced lower-educated workers in less skill-intensive jobs. While these effects were present before the financial crisis of 2008, they became more obvious after jobs associated with the housing bubble disappeared.
ISSN:	0734-306X 1537-5307