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Job Polarization in Europe: Evidence from Central and Eastern European Countries

Dennis Nchor
Dennis Nchor
 and 
Petr Rozmahel
Petr Rozmahel
   | Apr 21, 2020
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Published Online: Apr 21, 2020
Page range: 52 - 74
DOI: https://doi.org/10.2478/danb-2020-0004
Keywords
© 2020 Dennis Nchor et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Job polarization in USA and CEEC, 2000–2016Source: Generated by authors using data from the Bureau of Labour Statistics
Job polarization in USA and CEEC, 2000–2016Source: Generated by authors using data from the Bureau of Labour Statistics

Figure 2

Employment performance by occupations in CEEC, 2000–2016Source: Generated by authors using data from the Bureau of Labour Statistics
Employment performance by occupations in CEEC, 2000–2016Source: Generated by authors using data from the Bureau of Labour Statistics

Figure 3

Labour in skill groups by education, CEECSource: Generated by authors using data from Eurostat
Labour in skill groups by education, CEECSource: Generated by authors using data from Eurostat

Figure 4

Lowly educated labour in other skill occupations, CEECSource: Generated by authors using data from Eurostat
Lowly educated labour in other skill occupations, CEECSource: Generated by authors using data from Eurostat

Results of Hausman test of mean group and pooled mean group models

Low sill employment
Variable (b) (B) (b − B) sqrt (diag (V_b − V_B))
MG PMG difference S.E.
Log GVA(L1.) 0.907 1.151 −0.244 0.469
Log TFP (L1.) −2.422 −3.569 1.147 3.926
Chi2(2) = = (b − B)′ [(V _ b − V _ B) ˆ(−1)] (b − B) P value
0.4 0.821
Middle skill employment
Variable (b) (B) (b − B) sqrt diag (V _ b − V _ B)
MG PMG difference S.E.
Log GVA(L1.) 0.228 0.428 −0.200 0.090
Log TFP (L1.) −0.444 −1.149 0.705 0.580
Chi2(2) = = (b − B) ′ [(V _ b − V _ B) ˆ(−1)] (b − B) P value
4.94 0.085
High skill employment
Variable (b) (B) (b − B) sqrt diag (V _ b − V _ B)
MG PMG difference S.E.
Log GVA(L1.) 0.009 0.205 −0.197 0.273
Log TFP (L1.) 1.470 1.155 0.315 2.923
Chi2(2) = = (b − B) ′ [(V _ b − V _ B) ˆ(−1)] (b − B) P value
4.94 0.085

Impact of Technology on high skill labour

VARIABLES ECT Bulgaria Czech R Hungary Poland Romania Slovakia
ECT 0.100**(0.0145) −0.923***(0.138) −0.55***(0.034) −0.850***(0.180) −0.383***(0.060) −0.969***(0.268)
D.ln High skill −0.124**(0.048) −0.48**(0.020) −0.21**(0.020) −0.47(0.029) −0.50***(0.003) −0.70**(0.036)
D.ln GVA −0.551(0.429) 1.053***(0.169) −0.301***(0.104) 0.194(0.180) 0.279***(0.029) −1.834***(0.550)
D2.ln GVA 1.585***(0.597) −2.725***(0.487) 0.948***(0.302) −0.257(0.273) −0.196***(0.068) 4.396***(1.443)
D3.ln GVA −2.030**(0.798) 3.312***(0.693) −0.768**(0.385) 0.416(0.283) 0.617***(0.094) −3.966***(1.366)
D4.ln GVA 1.143*(0.592) −1.655***(0.420) 0.163(0.222) −0.215(0.150) −0.804***(0.070) 1.916***(0.691)
D5.ln GVA −0.237(0.189) 0.311***(0.098) 0.001(0.052) 0.041(0.034) 0.298***(0.021) −0.389***(0.142)
D.TFP −0.176(0.300) 1.634***(0.356) 0.010(0.185) 1.100***(0.319) −0.440***(0.090) 0.964**(0.442)
L.ln GVA 0.213***(0.025)
L.TFP 2.560***(0.181)
Constant −0.197(0.358) 3.320***(0.484) 0.201*(0.103) 3.220***(0.679) 1.290***(0.224) 2.214***(0.606)
Observations 72 72 72 72 72 72 72
Standard errors in parentheses*** p < 0.01, ** p < 0.05, * p < 0.1

Impact of Technology on employment of low skill labour

VARIABLES ECT Bulgaria Czech R Hungary Poland Romania Slovakia
ECT −0.559**(0.272) 0.161**(0.090) −0.109**(0.043) −0.739***(0.135) −0.543***(0.157) −0.252**(0.109)
D.Ln low skill −0.68**(0.012) −0.198***(0.002) −0.56**(0.011) −0.39***(0.009) −0.18***(0.007) −0.80**(0.091)
D.ln GVA −0.050(0.246) −0.063(0.056) −0.038(0.080) 0.002(0.042) 0.055(0.070) 0.167(0.183)
D.ln TFP −0.999(2.002) 1.007***(0.390) 4.704**(1.915) 2.433***(0.706) 1.600***(0.523) 1.168(0.852)
D2.ln TFP −0.975(2.171) −0.521(0.539) −4.181***(1.531) −3.417***(0.918) −2.555***(0.796) −1.384(1.126)
D3.ln TFP 0.513(0.739) 0.079(0.260) 1.742***(0.676) 0.831***(0.321) 0.917***(0.352) −0.115(0.531)
L.ln GVA 0.211***(0.068)
L.ln TFP −2.882***(0.219)
Constant 1.617*(0.869) −0.428(0.306) 0.267*(0.142) 2.515***(0.802) 1.890**(0.837) 0.280(0.280)
Observations 72 72 72 72 72 72 72

Impact of Technology on middle skill labour

VARIABLES ECT Bulgaria Czech R Hungary Poland Romania Slovakia
ECT −1.060***(0.210) −0.209**(0.085) −0.387**(0.021) −0.372***(0.096) −0.163***(0.051) −0.195**(0.012)
D.ln Middle Skill −0.125**(0.055) −0.190***(0.018) −0.0170**(0.055) −0.390***(0.004) −0.220**(0.019) −0.160**(0.032)
D.ln GVA 1.441***(0.243) −0.292***(0.112) 0.657*(0.350) 0.492***(0.062) 0.224***(0.057) 0.470**(0.191)
D2.ln GVA −1.152***(0.286) 0.446***(0.159) −0.525(0.339) −0.308***(0.072) −0.053(0.069) −0.051(0.230)
D3.ln GVA 0.473***(0.150) −0.486***(0.105) 0.193(0.134) 0.034(0.040) −0.066(0.041) −0.071(0.105)
D.ln TFP −0.006(0.011) −0.161***(0.034) 0.014(0.050) −0.015(0.018) −0.038***(0.013) 0.006(0.021)
L. ln GVA 0.368***(0.065)
L.ln TFP −0.719***(0.187)
Constant 3.588***(0.736) 0.613*(0.325) 1.246(0.839) 1.589***(0.464) 0.607**(0.261) 0.589(0.432)
Observations 72 72 72 72 72 72 72
Standard errors in parentheses*** p < 0.01, ** p < 0.05, * p < 0.1
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Business and Economics, Political Economics, Macroecomics, Economic Policy, Law, European Law, other
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