Is job polarization path-dependent? Evidence from Korea

What is the source of job polarization in Korea? In this paper, we empirically examine if two competing hypotheses, a path-dependency hypothesis and an ageing hypothesis, can explain patterns of job polarization in Korea. By exploiting regional variations, we find that between 2008 and 2019, job polarization was more evident in regions in which routine workers were historically more important than non-routine workers (path-dependency) while ageing is not associated with the structural change in the labour market. We further show that job polarization is mainly driven by female workers.