Skip to main content

Employment Growth and Labor Market Polarization in the United States and Texas

  • Chapter
Ten-Gallon Economy

Abstract

Texas has experienced job growth that is twice that of the rest of the nation. Despite this growth premium, the patterns of employment and wage polarization that characterize the nation are also apparent in Texas. The share of middle-wage jobs has declined while the shares of low- and high-wage jobs are increasing. Looking at Texas by decade, the 1990s stand out as a period when the highest-wage jobs grew the fastest. This trend was disrupted by the Great Recession, which erased most of the relative employment gains at the top of the wage distribution in both Texas and the nation. Consistent with the job polarization, cross-industry wages have grown more disparate over time, with more interindustry wage inequality in 2012 than in 1979.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 120.00
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Altig, Dave (2013), “Myth and Reality: The Low-Wage Job Machine,” Federal Reserve Bank of Atlanta Macroblog, available at http://macroblog.typepad.com/macroblog/2013/08/myth-and-reality-the-low-wage-job-machine.html (accessed 8/13/2013).

    Google Scholar 

  • Atkinson, Anthony B., Thomas Piketty, and Emmanuel Saez (2011), “Top Incomes in the Long Run of History,” Journal of Economic Literature 49 (1): 3–71.

    Article  Google Scholar 

  • Autor, David H. (2010), “The Polarization of Job Opportunities in the U.S. Labor Market: Implications for Employment and Earnings” (Washington, DC: Center for American Progress and the Hamilton Project), http://economics.mit.edu/files/5554.

    Google Scholar 

  • Autor, David and David Dorn (2013), “The Growth of Low-Skill Service Jobs and the Polarization of the U.S. Labor Market,” American Economic Review 103 (5):1553–1597.

    Article  Google Scholar 

  • Autor, David H., David Dorn, and Gordon H. Hanson (forthcoming), “Untangling Trade and Technology: Evidence from Local Labor Markets,” The Economic Journal.

    Google Scholar 

  • Autor, David H., Lawrence F. Katz, and Melissa S. Kearney (2006), “The Polarization of the U.S. Labor Market,” AEA Papers and Proceedings, May 2006, 189–194.

    Book  Google Scholar 

  • Blinder, Alan S. (2009), “How Many U.S. Jobs Might Be Offshorable?” World Economics 10 (2): 41–78.

    Google Scholar 

  • Brynjolfsson, Erik and Andrew McAfee (2014), The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: W.W. Norton & Company).

    Google Scholar 

  • Card, David and John E. DiNardo (2002), “Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles,” Journal of Labor Economics 20 (4): 733–783.

    Article  Google Scholar 

  • DeNavas-Walt, Carmen and Bernadette D. Proctor (2014), “Income and Poverty in the U.S.: 2013,” Current Population Reports, P60–249, U.S. Census Bureau (Washington, DC: U.S. Government Printing Office), www.census.gov/content/dam/Census/library/publications/2014/demo/p60–249.pdf

    Google Scholar 

  • Foote, Christopher L. and Richard W. Ryan (2013), “Labor-Market Polarization Over the Business Cycle,” Public Policy Discussion Paper no. 12–8 (Federal Reserve Bank of Boston).

    Google Scholar 

  • Frank, Mark W. (2009), “Inequality and Growth in the United States: Evidence from a New State-Level Panel of Income Inequality Measures,” Economic Inquiry 47 (1): 55–68.

    Article  Google Scholar 

  • Frey, Carl Benedikt and Michael A. Osborne (2013), “The Future of Employment: How Susceptible Are Jobs to Computerisation?” University of Oxford.

    Google Scholar 

  • Goldin, Claudia and Lawrence F. Katz (2008), The Race Between Education and Technology (Cambridge, MA: Harvard University Press).

    Google Scholar 

  • Jaimovich, Nir and Henry E. Siu (2012), “The Trend Is the Cycle: Job Polarization and Jobless Recoveries,” NBER Working Paper no. 18334 (Cambridge, MA, National Bureau of Economic Research, August).

    Book  Google Scholar 

  • Katz, Lawrence (1999), “Technological Change, Computerization, and the Wage Structure,” (Harvard University, unpublished manuscript).

    Google Scholar 

  • Krueger, Alan B. (1993), “How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989,” Quarterly Journal of Economics 114: 977–1023.

    Google Scholar 

  • Lemieux, Thomas, (2006), “Increased Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?” American Economic Review 95 (2): 461–498.

    Article  Google Scholar 

  • Levy, Frank and Richard J. Murnane (2005), The New Division of Labor: How Computers Are Creating the Next Job Market (Princeton, NJ: Princeton University Press).

    Google Scholar 

  • LoPalo, Melissa and Pia M. Orrenius (2014), “Texas Leads Nation in Creation of Jobs at All Pay Levels,” Federal Reserve Bank of Dallas Southwest Economy, first quarter.

    Google Scholar 

  • Neumark, David and Jennifer Muz (2013), “Job Growth and Economic Growth in California,” Federal Reserve Bank of San Francisco Economic Letter, April.

    Google Scholar 

  • Piketty, Thomas and Emmanuel Saez (2003), “Income Inequality in the United States, 1913–1998,” Quarterly Journal of Economics 118 (1): 1–39.

    Article  Google Scholar 

  • Tuzemen, Didem and Jonathan Willis (2013), “The Vanishing Middle: Job Polarization and Workers’ Response to the Decline in Middle-Skill Jobs,” Federal Reserve Bank of Kansas City, Economic Review, first quarter.

    Google Scholar 

Download references

Authors

Editor information

Pia M. Orrenius Jesús Cañas Michael Weiss

Copyright information

© 2015 Federal Reserve Bank of Dallas

About this chapter

Cite this chapter

LoPalo, M., Orrenius, P.M. (2015). Employment Growth and Labor Market Polarization in the United States and Texas. In: Orrenius, P.M., Cañas, J., Weiss, M. (eds) Ten-Gallon Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137530172_7

Download citation

Publish with us

Policies and ethics