Job polarization and labour supply changes in the UK

This paper investigates the effect of technological exposure on UK employment polarization during 1993–2014. The identification strategy exploits variation across local labour markets in the historical specialization in routine-intensive activities. The Routine Biased Technical Change hypothesis is tested and only partly corroborated. Strikingly, I find no effect of technological exposure on the growth of high-skilled non-routine cognitive jobs. I claim that the rapid educational upgrading of the 1990s may help explain this result. This is supported by evidence of a marked increase in outflows of both graduates and non-graduates from the top moving down the occupational ladder since 1991.