Job polarization and labour supply changes in the UK

This paper investigates the effect of technological exposure on UK employment polarization during 1993-2014. The identification strategy exploits variation across local labour markets in the historical specialization in routine-intensive activities. The Routine Biased Technical Change hypothesis is tested and only partly corroborated. Strikingly, I find no effect of technological exposure on the growth of high-skilled non-routine cognitive jobs. I claim that the rapid educational upgrading of the 1990s may help explain this result. This is supported by evidence of a marked increase in outflows of both graduates and non-graduates from the top moving down the occupational ladder since 1991.