In recent decades, the U.S. labor market has undergone a fundamental shift — a polarization of the job market and the hollowing out of middle-skill occupations. Furthermore, since 1990, every U.S. recession has been followed by a so-called jobless recovery . Given the unique nature of the pandemic shock, the following question is worth considering: Will the 2020 recession further polarize the job market and leave us with another jobless recovery?
Since the early 1980s, middle-skill, routine occupations have declined while high-skill, non-routine occupations have seen substantial growth. Interestingly, low-skill, non-routine service-oriented occupations have also experienced job growth. Economists Daron […]