At any given time, technology does two things to employment: It replaces traditional jobs, and it creates new lines of work. Machines replace farmers, but enable, say, aeronautical engineers to exist. So, if tech creates new jobs, who gets them? How well do they pay? How long do new jobs remain new, before they become just another common task any worker can do?
A new study of U.S. employment led by MIT labor economist David Autor sheds light on all these matters. In the postwar U.S., as Autor and his colleagues show in granular detail, new forms of work have tended to benefit college graduates under 30 more than anyone else.
“We had never before seen exactly who is doing new work,” Autor says. “It’s done more by young and educated people, in urban settings.”
The study also contains a powerful large-scale insight: A lot of innovation-based new work is driven by demand. Government-backed expansion of research and manufacturing in the 1940s, in response to World War II, accounted for a huge amount of new work, and new forms of expertise.
“This says that wherever we make new investments, we end up getting new specializations,” Autor says. “If you create a large-scale activity, there’s always going to be an opportunity for new specialized knowledge that’s relevant for it. We thought that was exciting to see.”
” is forthcoming in the Annual Review of Economics . The authors are Autor; Caroline Chin, a doctoral student in MIT’s Department of Economics; Anna M.
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