The Decline of Routine Tasks, Education Investments, And Intergenerational Mobility

Authors

Patrick Bennett, University of LiverpoolFollow
Kai Liu, University of CambridgeFollow
Kjell Salvanes, Norwegian School of EconomicsFollow

Publication Date

3-16-2023

Series

Upjohn Institute working paper ; 23-382

DOI

10.17848/wp23-382

Abstract

How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in education investments of high school students, where they invest less in vocational-trades education and increasingly invest in college education. Our results highlight that labor demand changes impact inequality in the next generation. Low-ability and low-SES students are most responsive to task-biased demand changes and, as a result, intergenerational mobility in college education increases.

Issue Date

March 2023

Note

Upjohn project #58156

Sponsorship

Research Council of Norway and W.E. Upjohn Institute for Employment Research Early Career Research Award 18-156-10

Subject Areas

EDUCATION; K-12 Education; Postsecondary education; Career and technical education; LABOR MARKET ISSUES; Local labor markets