Question: Manning (2013) argues that machines and software programs have replaced employees in many routine jobs in the middle of the income distribution leading to a

Manning (2013) argues that machines and software programs have replaced employees in many routine jobs in the middle of the income distribution leading to a ‘job polarization’ of ‘lovely’ jobs (high wage occupations) and ‘lousy’ jobs (those in low wage occupations) while the middle jobs have been hollowed out leading to a growing wage inequality. Machines replace people in routine tasks for which a program can be written (Autor et al., 2013). An hourglass economy has been created where technology has replaced workers in routine middle wage jobs. However, Holmes and Mayhew (2012) find less evidence of a polarization in wage distribution. Is this another case of all change or more continuity?

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