Abstract

Numerous studies describe the phenomenon of "labour market polarisation" in Western industrial nations: In the course of technological progress, in the long-run routine intensive tasks are automated and replaced, while employment increases in less routine intensive "manual" and "abstract" tasks. As a result of this change, it might be difficult for individuals from routine occupations to find a new job in their traditional field of activity on the local labour market after losing their job. Moreover, if they cannot switch to other regions due to restrictive migration costs, re-employment may necessitate a change in the tasks that workers perform. This may result in persistent unemployment and/or a wage loss if not all of the previous task-related experience can be made productive in the new job. The aim of this research project is to examine the heterogeneous employment and wage effects after job displacement as a result of the interplay of these factors. We want to analyse which groups are particularly affected by the consequences of job loss and which role individual mobility plays both across space and tasks. This can provide important implications for the design of specific measures such as takeover of removal expenses or further training for different groups of people and thus contribute to the optimal design of active labour market policies.