The least-skilled workforce in the United States is disproportionally employed in the provision of time-intensive services that can be thought of as market-substitutes for home production activities. At the same time, skilled workers–with their high opportunity cost of time–spend a larger fraction of their budget in these services. Given the skill asymmetry between consumers and providers in this market, product demand shifts–such as those arising when relative skilled wages increase–should boost relative labor demand for the least-skilled workforce. We estimate that this channel may explain one-third of the growth of employment of non-college workers in low-skill services in the 1990s.

Spillovers from high-skill consumption to low-skill labor markets

G. Ragusa
2013-01-01

Abstract

The least-skilled workforce in the United States is disproportionally employed in the provision of time-intensive services that can be thought of as market-substitutes for home production activities. At the same time, skilled workers–with their high opportunity cost of time–spend a larger fraction of their budget in these services. Given the skill asymmetry between consumers and providers in this market, product demand shifts–such as those arising when relative skilled wages increase–should boost relative labor demand for the least-skilled workforce. We estimate that this channel may explain one-third of the growth of employment of non-college workers in low-skill services in the 1990s.
2013
Mazzolari, F.; Ragusa, G.
File in questo prodotto:
File Dimensione Formato  
REST_a_00234.pdf

accesso aperto

Tipologia: Versione finale editoriale
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 361.17 kB
Formato Adobe PDF
361.17 kB Adobe PDF Visualizza/Apri
REST_a_00234.pdf

accesso aperto

Tipologia: Documento in Post-print
Licenza: Creative commons
Dimensione 689.55 kB
Formato Adobe PDF
689.55 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11568/958556
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 94
  • ???jsp.display-item.citation.isi??? 86
social impact