Job Polarization in the Tech Economy. New technologies, such as artificial intelligence, make it possible to replace skilled labor, a use that could contribute to a new employment polarization a simultaneous increase in highly skilled jobs with higher salaries and those in low-skilled jobs with lower wages said Jurgen Weller, Economic Affairs Officer at the Economic Commission for Latin America and the Caribbean (ECLAC). He argued that there are four global trends in Latin American labor markets economic globalization and the redesign of international trade demographic aging climate change and policies for the transition toward sustainable economies.
Regarding the third point, he explained that technologies can also replace non-routine manual tasks, such as transportation, for example which would impact lower-level skilled officials. We must also keep in mind that teleworking is here to stay, he added, while participating in the academic activity of the Colloquium of Specializations in Economics of the Graduate Studies Division of the Faculty of Economics. Faced with this situation, the challenges are the gaps in access to infrastructure and digital skills, the latter ultimately tending to offset by greater differences in the productive and educational/social.
Human roles at work and relative complexity of automation: Genesis of job polarization
Structure between rural and urban areas, and a risk of greater precariousness, he noted while participating in the virtual conference The (Present and Future) Impact of Various Global Trends on Latin American Labor Markets. Jurgen Weller said that regarding climate change and the destruction caused by man-made disasters, the following is true The most affected countries have been those in Central America, and especially Haiti, due to extreme weather events such as hurricanes, whose frequency is much higher. Rising energy prices are also due to increased mortality and, therefore, job losses, especially in the agricultural and construction sectors.
The expert explained that, in the field of green job creation, there is a debate about its definition, “one ambiguous definition, and another rigorous one, are figures within this field, for example. The idea that technology and artificial intelligence (AI) can help each other influence job polarization has been a topic of debate, especially recently, with the increasing demand for AI technology. Therefore, there is a need for clear data and to analyze this data.
Country-level job polarization
According to Grand View Research, the global AI market will grow 37% annually from 2023 to 2030. In addition to regenerating 133 million jobs, it is true that technology and AI are influencing job polarization by eliminating some jobs and deploying many of their occupants, and also providing new jobs furthermore, it increases the overall productivity and efficiency of the economy. The solution lies in how to design policies and guidelines that counteract or find mechanisms to take advantage of what is simply inevitable, or rather, guidelines on how to support workers in seeking adaptation.
Always learn, train in new technologies, with curiosity and the ability to adapt, the origin of humanity in technology. This project applies a new non-parametric index of labor polarization that quantifies the impact of robotization on the Spanish labor market (and European countries) during the period 1998-2020. It provides results by autonomous community and by variables such as sex, educational level, and type of employment contract, which help study the influence of automation on socioeconomic inequality.
Hollowing out the middle
The article analyzes the impact of the quarantine due to the COVID-19 pandemic on polarization and the relationship between the actual polarization experienced by workers and the perception of the likelihood of their jobs becoming automated, based on data from the Cotec Survey on Social Perceptions of Innovation. The main finding of the study is that, over the last two decades, Spain has become more polarized in terms of labor due to automation.
The text reports that net employment has also been created in the The extreme axes of the wage distribution (low and high wages) are eliminated from the core of the distribution, in relation to routine tasks (average wage level). This phenomenon is very common in most European economies. All Spanish autonomous communities have experienced labor polarization, although with greater intensity. By gender, men are the group with the greatest labor polarization, as this coincides with a time when women have experienced an increase.
Conclusion
According to a wide range of research, technical change is at the center of the transformation of income inequality, whether through technologies that are well-targeted to replace skilled labor (with a deep bias toward unskilled labor) or well-targeted to replace unskilled labor (with a special bias toward unskilled labor). There is now a broad consensus that, to a large extent, the phenomenon of job polarization is a phenomenon that affects the labor force.
It is true, however, that a broad literature has identified the changes in inequality indicators and employment growth with the phenomenon of job polarization. According to Acemoglu and Autor (2012), job polarization occurs when there is simultaneous job growth in high-skilled, high-paying jobs and low-skilled, low-paying jobs. Acemoglu and Autor (2011) presented the Ricardian review of the labor market, in which they commonly examine the labor market polarization hypothesis Until the 1980s, the study of income inequality in Colombia was largely limited to education and the observed change in its remuneration.
