Polarized labor demand owing to routine-biased technological change: The case of Korea from 1993 to 2015

Abstract

With the development of technologies that efficiently enable human resources to be replaced or substituted across occupations, routine-biased technological change (RBTC) is currently pervasive in developed countries. This study finds statistical and empirical evidence for RBTC in Korea from 1993 to 2015 using the routine task intensity (RTI) index. The changing employment structure shows a decline in middle-skilled occupation groups and concurrent rise in high- and low-skilled occupation groups in Korea in the sample period of time. Empirical results confirm that employees in routine-intensive occupations are more vulnerable to job loss and further potential wage polarization.