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Untangling US Employment Changes: Production Technology Versus Trade Structure

Year: 2025

Type: article

Abstract: ABSTRACT This paper quantifies how much trade structure and production technology changes contribute to US employment changes. We apply a structural decomposition analysis (SDA) to global input–output tables. SDA extends the conventional shift‐share analysis and splits employment changes into the contributions by several drivers. We find that trade structure and production technology changes contribute to a decrease in US employment, but the contribution of production technology changes is substantially larger. Our results also corroborate the skill‐ and routine‐biased technological change hypotheses. That is, changes in production technology decreased low‐ and medium‐skilled or routine employment more than high‐skilled or non‐routine employment.

Source: Review of International Economics

DOI: 10.1111/roie.12805

Authors: Hylke Dijkstra, Erik Dietzenbacher

Institution: University of Groningen

Language: English

Topic: Regional Economic and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,350