UNU-MERIT Working Papers Series
Is there job polarization in developing economies? A review and outlook
Antonio Soares Martins Neto, Nanditha Mathew, Pierre Mohnen & Tania Treibich #2021-045This paper analyses the evidence of job polarization in developing
countries. We carry out an extensive review of the existing empirical
literature and examine the primary data sources and measures of routine
intensity. The synthesis of results suggests that job polarization in
emerging economies is only incipient compared to other advanced
economies. We then examine the possible moderating aspects preventing
job polar- ization, discussing the main theoretical channels and the
existing empirical literature. Overall, the literature relates the lack
of polarization as a natural consequence of lim- ited technology
adoption and the offshoring of routine, middle-earning jobs to some host
developing economies. In turn, the limited technology adoption results
from sub- optimal capabilities in those economies, including the
insufficient supply of educated workers. Finally, we present the main
gaps in the literature in developing economies and point to the need for
more micro-level studies focusing on the impacts of tech- nology
adoption on workers’ careers and studies exploring the adoption and use
of technologies at the firm level.
JEL Classification: J24, J63, O33, E24
Keywords: Job polarization; Routine intensity; Skills; Developing
countries
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