Comin, Diego; Danieli, Ana; Mestieri, Martí - 2020
We propose a mechanism for labor-market polarization based on the nonhomotheticity of demand that we call the income …, and the relative demand for lowand high-skill occupations increases, causing labor-market polarization. A calibrated … lowand high-skill occupations. This mechanism is similarly important for the polarization of labor markets in Western Europe …