Economics for Journal of Economic Perspectives -myassignmenthelp

Question: Discuss about theEconomics for Journal of Economic Perspectives. Answer: Introduction Polarization of labour refers to a situation when the jobs requiring moderate skill level seems to disappear in compare to the jobs which are at bottom level comprised of few skills and at the top level requiring greater skills. The overall job structure in the U.S. has discerned to be polarized sharply in the last two decades because of increasing job openings in both high-skill, high-wage occupations and low-skill, low wage occupations. This is coupled with contracting opportunities in middle-wage, middle-skill white-collar and blue-collar jobs. These are identified as the major contributor for causing income equality in the country. The report aims to depict the impact of polarization on wages, rationale for the polarization of wages and impact on labour market if automated driving becomes a reality. Impact of Polarization on wages As discussed by Autor, the barbell shape of the occupational employment growth has shown that the occupational polarization will have a catalysing impact on the wage polarization. This is depicted with relative rise in both high-education, abstract task?intensive jobs and in low-education, manual task-intensive jobs[1]. It needs to be discerned that information technology has strongly contributed to the employment polarization. This is measured in terms of the quantity of the jobs and is not expected to get culminated in the corresponding wage polarization. The advent of information technology and computerization has strongly complemented the workers for performing of abstract task incentive jobs. In addition to this, changes in the technology has altered the types of the jobs available and polarization of the labour market, in which wage gains has been disproportionately distributed across the top and the bottom of the skill and income distribution in compared to the middle. Rationale for the polarization of wages As per the empirical evidences gathered from the research it has been discerned that automation and information technology has been seen to cause lesser degree of wage polarization in the U.S. This consideration has been explained with the relevance of the different types of the cross-sectional data. Therefore, technological changes are far from the only factor affecting the U.S. labour market in last 15 years. Some of the other causes for the polarization of the wages has been depicted with the different types of the macroeconomic factors. The first main reason is considered with effects of business cycle. This has led to bursting of dot-com bubble in 2000 and collapse of the curtailed investment and innovative activity. The second important factor is determined with the employment dislocations in the U.S. labour market which is depicted with sharp rise in the import penetration and rapid globalization. In addition to this, the increasing pace of employment growth in both high and l ow-education jobs has considerably reduced the share of employment accounted with the middle-skill jobs. In 1979 the middle-skill occupations such as sales; office and administrative workers; production workers; and operatives accounting for a total 60% of employment. Impact on labour market if automated driving becomes a reality It needs to be understood that artificial intelligence (AI) in automated driving, will be having a central impact on the global labour market in the future years. There have been several effects identified pertaining to working time, remuneration and on the working environment, new forms of employment and the impact on labour relations. The impact of new technology on the labour market will be mostly seen with the blue and the white-collar job sectors. The faster process of division of labour and more number of single working algorithm for a detailed job complexity will result in declining workforce. This is seen because the intelligent algorithm used in the automated driving will be able to replace the labour required for manually driving the cars. The positive aspects of the change in technology may be identified with considerable savings in terms of cost of labour and products. In addition to this, the autonomous computer system in cars will not be dependent on the external factor s to measure the work reliability constantly and it can work in danger zones as well thereby replacing the risk involved in employing manual labour. The negative impact of the automation process is feared in the labour market of developing countries such as North African countries and Indonesia which are not yet equipped for this due to lack of education and investment in a (digital) infrastructure[2]. Conclusion The main impact of the polarization on wages has been depicted with occupational polarization having a catalysing impact on the wage polarization. The rationale for this has been depicted with the various types the macroeconomic factors along with the significant changes in the technology and automation. References David, H. "Why are there still so many jobs? The history and future of workplace automation."Journal of Economic Perspectives29.3 (2015): 3-30. Wisskirchen, Gerlind, et al. "Artificial intelligence and robotics and their impact on the workplace."The International Bar Association Global Employment Institute (IBA GEI)(2017).