Full report: Oregon Job Polarization

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    STATE OF OREGON, OFFICE OF ECONOMIC ANALYSIS

    Job Polarization in OregonAn Examination of Occupational Growth by Wage

    Level, 1980-2012Josh Lehner

    October, 2013

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    Introduction

    Job polarization represents a key labor marketdevelopment of the past thirty years across the globe.Job polarization refers to an increasing concentrationof jobs in occupations at both the high and low ends ofthe wage scale, with a relative shrinking share ofmiddle-wage jobs. For now, the majority of Americans,and Oregonians, continue to be employed withinmiddle-wage occupations. However, employmentgrowth over the past three decades has become verypolarized, with this trend projected to continue in thecoming decade.

    A growing body of research has illustrated thesechanges at the national level and at least a partialconsensus is forming as to why this polarization isoccurring. The two most common explanations involvetechnological change and globalization factors which

    certainly are not mutually exclusive. The role oftechnology, including the computerization of theworkplace, is generally considered the mostsignificant contributor to job polarization.Technological investments often involve theautomation of what may be termed routine work,allowing each individual worker to be more productiveand allowing firms to get by with fewer workers.

    As defined by Autor, Levy, and Murnane (2003),routine jobs have sufficiently well-defined tasks thatcan be satisfactorily completed by a computer

    A di d i A t (2010) l

    access to natural resources face less pressure thando routine occupations.

    While job polarization has been reshaping the labormarket for decades, the Great Recession exacerbatedthe process in both the nation and in Oregon. Asnoted by Jaimovich and Siu (2012), in their TheTrend is the Cycle research paper, most job lossesamong middle-wage occupations occur duringrecessions. Making matters worse, the lack of growthamong middle-wage occupations in the early stagesof the expansions has resulted in the joblessrecoveries experienced in recent decades. This jobpolarization trend has resulted in the characterizationor nature of the recent business cycles, hence theirpapers title. In other words, many jobs in middle-wage occupations are eliminated during economicdownturns and are not replaced to the same degreeas both high- and low-wage jobs during the

    subsequent expansion.

    Although much national and international researchhas focused on measuring job polarization, little hasbeen done on a regional or local level. This report isdesigned to highlight the job polarization trends inOregon over the past thirty years, how the GreatRecession has impacted the state, and also how the

    jobs of tomorrow will further alter the states economy.Much of Oregons job polarization has occurred duringperiods when its manufacturing firms have downsized.M iddl j b l t d i th 1980

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    classifications. Employment changes over the pastthirty years are then examined for Oregon andcompared with national trends over the same timeperiod, followed by an analysis of the GreatRecessions impact on Oregons occupationalstructure. Additional consideration is given todifferences seen in job polarization in Oregonsmetropolitan or urban areas compared with theremainder of the state. Finally, the economic outlookin the coming years reveals that job polarization isexpected to continue in the coming decade. The finaltwo sections conclude, discuss implications of jobpolarization and highlight possible areas for furtherresearch.

    Methodology

    This report analyzes employment in Oregon at theoccupational level and its growth and changes over

    recent decades. Generally, most analyses ofemployment refer to industries manufacturing,leisure and hospitality, government, etc. howeverexamining the labor market through the occupationallens provides a somewhat different look. Occupations,such as accountants or managers, span all industriesand should a trend, either cyclical or structural,emerge among these occupations, it may not be

    detected when examining just industry employment.Using both industry and occupational data provides amore complete picture of the labor market than justone or the other.

    time frames depending upon the exact data set used.U.S. Census Bureau (Census) data is available for1980, 1990, 2000 and 2010. OccupationalEmployment Statistics are available for 1997-2012from the U.S. Bureau of Labor Statistics (BLS) .

    Using decennial Census data as the basis for the longrun trends over the past 30 years has both positiveand negative attributes. The consistency with whichCensus is able to compile data and information acrossboth regions and time is the datas greatest strength

    and provides a solid foundation on which to analyzethese trends. However, the Census occurs only onceper decade and the exact years do coincide withdistinct points in the business cycle. 1980, 1990 and2000 are all considered to be at, or near, the relativepeak of business cycles, however 2010 certainly is notand is considered the labor market trough of the GreatRece ssion. Oregons business cycles overall, in terms

    of timing, match the U.S. business cycles howevergiven the volatility of the states economy, Oregontends to fare better than the nation as a whole duringexpansions and worse than the average state duringrecession. These facts are likely to influence some ofthe information as it is only available once every tenyears.

    One additional item to highlight is the fact that datafrom different sources or different surveys do varysomewhat when calculating exact figures.Occupational data from Census, occupational data

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    wage levels. Therefore, in this report, job polarizationrefers to employment by wage level and not explicitlyby skill level. Nevertheless, these concepts are closelyinterconnected. Avenues for future research include amore thorough examination of each of the hundreds ofdetailed occupations in an effort to create aconsistently defined set of occupations at the regionallevel over time.

    Wage Group Classification

    Each of the 22 occupational groups is categorized intoone of four main wage groups based on their 2012median annual wage 2. Each group is defined asfollows. Please see Appendix A for more informationon the classification of individual occupations and

    Appendix B for each occupational group s medianwage.

    High Wage (> $50,000)

    Business and Finance, Computer and Mathematical,Engineers and Architects, Health Practitioners, Legal,Management, and Scientists, including Social

    Upper Middle ($40,000 - $50,000)

    Arts and Entertainment, Community Service,

    Construction, Installation and Repair, ProtectiveServices, and Teachers

    Lower Middle ($25,000 - $40,000)

    share of each wage group is shown on the horizontalaxis. The largest group, representing 42 percent of allOregon jobs in 2012, is the lower middle-wage group.Within these occupations, Administrative Support isthe largest occupational group, followed by Sales andTransportation. Combined, the two middle-wagegroups employ nearly 62 percent of Oregonians, whileat the national level these same groups employ nearly63 percent.

    Another way to examine the wage groups and their

    relative employment sizes is shown in Panel B. Theoccupations are listed in the same order as in Panel Aand the size of each bubble represents eachoccupational groups employment.

    Figure 1Panel A

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    $70,000

    $80,000

    $90,000

    $100,000

    Median Occupational Wage, 2012

    Hi gh Wage Upper Mi ddl e Lower Mi ddl e Low Wage

    LegalComputer/MathEngineers/ArchitectsManagement

    High WageScientistsSocial ScientistsBusiness/FinanceHealth P ractitioners

    Upper MiddleConstructionTeachersProtective ServicesInstallation/Repair Arts/EntertainmentCommunity Service

    Bldg M aintenanceFarmingPersonal Care

    Food Prep

    Low Wage

    Admin SupportProductionTransportationHealth SupportSales

    Lower Middle

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    Figure 2

    Three Decades of Polarization

    Job polarization has been ongoing in the UnitedStates for three decades and the same is true inOregon. Figure 2 shows the employment change bywage group over both the entire 1980 to 2010 timeperiod and each decade therein while Figure 3 shows

    nevertheless. Middle-wage occupations in Oregonhave grown at consistently lower rates than high- andlow-wage groups in recent decades.

    As detailed in Autor (2010), employment growthduring the 1980s was concentrated in high-wageoccupations while middle wage occupations

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    High Wage Upper Middle Lower Middle Low Wage

    Job Growth by Wage Group (1980 - 2010)

    Oregon U.S.

    0%

    5%

    10%15%

    20%

    25%

    30%

    35%

    40%

    High Wage Upper Middle Lower Middle Low Wage

    Job Growth 1990-2000

    Oregon U.S.

    0%

    10%

    20%

    30%

    40%

    50%

    High Wage Upper Middle Lower Middle Low Wage

    Job Growth 1980-1990

    Oregon U.S.

    -5%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    High Wage Upper Middle Lower Middle Low Wage

    Job Growth 2000-2010

    Oregon U.S.

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    while the U.S. experienced growth of approximately2.5 percent. Oregon also saw stronger populationgrowth leading up to 1980 and underwent a housingconstruction boom throughout the late 1970s. Fromthis higher peak, Oregons economy suffered a moresevere recession than the U.S. as a whole. The statelost over 12 percent of its employment and in both1982 and 1983 the state experienced actual netoutmigration as the population declined. The loss ofmiddle-wage jobs associated with timber productionwas particularly pronounced. Even as the staterecovered rapidly in the latter half of the decade, overthe course of the full ten years between Census,Oregon saw less net job creation than the averagestate.

    During the 1990s, Oregons growth differedsignificantly from the national pattern, as the stateexperienced a very strong economic expansion

    characterized by the ramp-up of the high technologysector, and accompanied by strong population growth.Oregons growth across the top three wage group ssignificantly outpaced the national average while low-wage occupational growth essentially matched thenational average in percentage terms. Thus, while thenation experienced an increase in the relative size ofthe low-wage occupations, Oregon did not. Oregons

    strong employment growth was seen nearly acrossthe board. Growth was significantly stronger than thenational average for all occupational groups exceptFarming and Food Preparation both of which are low-

    In the 2000s, Oregons growth pattern once againmirrored the national pattern. Concentration in boththe high-wage and low-wage occupational groupsincreased, leading to substantially more jobpolarization.

    Oregons only difference relative to other states inrecent years has been weak local job growth amongmiddle-wage occupational groups. Surprisingly,Oregon has gained just as many jobs in high-wageoccupations as the typical state over the past decade,

    despite seeing fewer job gains overall.

    Oregon suffered two recessions during the decade,both of which hit Oregon harder than the typical state,and reduced manufacturing and headquartersoperations significantly. The relative severity ofOregons recessions during the 2000s manifesteditself in a loss of many middle-wage jobs.

    Early in the decade, Oregon lost many of its metalmakers, technology firms and its last majorheadquarters operation for the timber industry. At theend of the decade, the housing downturn cost Oregonmany construction and wood product jobs. Localrecreational vehicle and other transportationequipment producers have also become significantlysmaller in recent years.

    The two middle-wage occupational categoriesexperienced slight gains at the U.S. level over thedecade (+4 2%) while in Oregon they actually

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    quotient. A location quotient (LQ) compares the shareof jobs in manufacturing locally to the share nationally.

    An LQ greater than one implies Oregon dependsmore on manufacturing than does the typical state.Oregons manu facturing LQ has been increasing overtime, helping to support the lower middle-wageoccupational group relative to the nation, or averagestate. Oregon added manufacturing jobs during the1980s and 1990s while the nation overall was losingthese jobs. More importantly, Oregon lost relativelyfewer during the 2000s when compared to the nationoverall. Following the timber industry restructuring inthe 1980s , Oregons manufacturing LQ was just 1.01in 1990, indicating that the relative size of themanufacturing sector in Oregon was just slightly largerthan the national average. However by 2000, thes tates LQ had increased to 1.06, by 2010 it hadincreased to 1.15 and by 2012 it had increased furtherto 1.17.

    A heavy dependence on struggling manufacturingindustries remains a primary factor behind jobpolarization in Oregon. However, the states economywould be much worse if our local manufacturersperformed as poorly as those in other states.

    Low-wage occupations in Oregon have grown slowerthan the nation over the past thirty years. Thisdifference is largely due to slower growth duringOregons dark period of the 1980s. Sinc e 1990,Oregons growth in low -wage occupations has

    through 2012 time period 5. The analysis ofoccupational changes in Oregon over the past decadeusing this data source closely mirrors that of theCensus data discussed previously and is thereforeomitted from this report 6.

    As shown in Figure 4 , the Great Recessions impacton job polarization has been to exacerbate theoccupational employment trends in Oregon.

    Figure 4 The Great Recessions Impact

    -12%

    -10%

    -8%

    -6%

    -4%

    -2%

    0%TOTAL High Wage

    UpperMiddle

    LowerMiddle Low Wage

    Changes in Recession (2008-2010)

    Oregon U.S.

    4%

    6%

    8%

    Changes in Recovery (2010-2012)

    Oregon U.S.

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    occupations. While Oregon lost 8 percent of its jobsoverall, high-wage occupations only lost 2 percent ofemployment, while low-wage occupations lost 3.5percent. The vast majority of the job loss during therecession occurred in both the upper middle- andlower middle-wage occupations.

    Out of the states total job losses of slightly more than137,000, 88 percent were in either upper middle orlower middle occupational groups. Two-thirds of theselosses can be traced to Construction, Production and

    Administrative Support occupations. The relativestrength of the high-wage occupations was partly dueto 6.2 percent growth in Health Practitioners duringthe recession, or nearly 5,000 jobs. However, evenwhen Health Practitioners are excluded, high-wageoccupations only fell 4.6 percent, significantly lessthan the total statewide.

    Two years into the labor market recovery the samegeneral job polarization pattern has emerged. From2010 to 2012, job growth has been dominated by bothhigh- and low-wage occupations. In fact, nearly23,000 of the 40,000 jobs gained in the past twoyears 7 have been among high-wage occupations,while just over 15,000 of the jobs gained have beenamong low-wage occupations.

    Approximately 10,000 of the high-wage gains havebeen within the Management occupational grouphowever Business and Finance, Computer andM th ti l d A hit t d E i i

    Construction, Protective Services and HealthcareSupport occupations. Even within these occupationalgroups, there is substantial variation. For example,even though employment in Teaching occupationsincreased, this was due to strong growth inPostsecondary occupations as college enrollmentskyrocketed during and after the recession in a toughlabor market. K-12 teaching positions, however,continued to see job losses as local governments,including school districts, faced budget reductions anddifficult spending decisions.

    Regional Divide

    While job polarization is a nationwide issue, the extentof the occupational changes does vary at the locallevel. Figure 5 illustrates the effects of job polarizationin Oregons metropolitan areas 8 and the rest of thestate.

    Like the na tion as a whole, both Oregonsmetropolitan and non-metropolitan areas have seen

    job polarization occur. However the nature of thispolarization differs as the larger cities haveexperienced a more high -wage heavy jobpolarization, while the more rural areas haveexperienced a more low -wage heavy polarization.

    Figure 5 Metro and Non-Metro Job Polarization

    Occupational Change (2000-2012)Metro Oregon Oregon Non-metro Oregon

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    high-wage jobs are in occupational groups such asLegal, Management, Business and Finance, whichtend to be housed in professional service industriesthat can be found in large and economically diversemetropolitan areas.

    The Outlook

    While examining historical changes helps placecurrent events in their proper perspective, what doesthe future hold for Oregon employment? Both our

    offices economic forecast and the OregonEmployment Departments 10 -Year EmploymentProjections by Industry and Occupation reveal that thesame general job polarization pattern is expected tocontinue going forward.

    The job gains seen in these first two years ofexpansion following the Great Recession have beenvery polarized, as shown previously. Whilepolarization is expected to continue, it will likely besomewhat muted over the next few years as there willbe some cyclical bounce following such a deeprecession.

    Specifically, Construction and Teachers both uppermiddle-wage occupations will see job gains in thenear term. The housing market continues to recover

    and new construction activity is just now returning to alevel commiserate with job gains. Similarly, state andlocal government budgets are being repaired, bothfrom a revenue and expenditure perspective and

    Administrative Support workers bookkeeping,payroll, clerks, etc are likely to continue to facetechnological advancements in the workplace asthese occupations, generally, perform routine taskswhich are prime candidates for automation. Thisprocess has been ongoing for decades already.

    According to the Census data, in 1980 AdministrativeSupport accounted for over 17 percent of the Oregonworkforce. In 2010, they accounted for less than 15percent. This relative decline representsapproximately 38,000 Administrative Support jobs inOregon today. Given that businesses continue toinvestment in business equipment and technologicaladvancements, this trend is expected to continue. Thenumber of Oregonians employed within theseoccupations will increase over time, however theirrelative share of the workforce will continue to erode.

    Overall, despite some cyclical improvements in the

    near term, job polarization is projected to continue toshape the state and national labor market in the yearsto come.

    For more detailed information on occupationalprojections, please visit the Oregon EmploymentDepartments website: http://www.qualityinfo.org 9.

    Policy Considerations of Job Polarization

    Job polarization is not necessarily bad. To the extentthat the jobs being created today and tomorrow are inhigh wage occupations that fit the skill set of Oregons

    http://www.qualityinfo.org/http://www.qualityinfo.org/http://www.qualityinfo.org/http://www.qualityinfo.org/
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    Over the long run, the primary determinant of what aworker gets paid is the value that worker brings totheir employer. As such, in order to improve theincome level of Oregons workers, either theseworkers must become more productive, or additionalproductive employers must be attracted to the region.

    Workers may become more productive by investing ineducation, by gaining experience within an industry orat a specific firm, or by gaining access to additionalequipment, technology or other resources.

    Over the past three decades, it has become moredifficult to obtain a job in high-wage or upper middle-wage occupation in Oregon without additional trainingor a college degree. During the 1960s and 1970s,when timber industry employment was booming 10,workers commonly finished high school and beganworking at the local mill. During this period, timber

    industry jobs paid wages that were typically 30percent above the statewide average. This type ofemployment has declined considerably in the past 30years and real wages have likewise not kept pace.Continuing with the timber example, the remainingindustry jobs now pay the statewide average wage,and employment has declined by approximately two-thirds. This represents not only a decline in thenumber of middle-wage jobs, but the wagesthemselves have eroded as well.

    Education attainment in the form of four year degreesi t th b ll d d ll f fi di hi h

    Figure 6 Job Openings & Education Requirements

    Job polarization cannot be addressed without a focuson educational attainment. That said, Oregonssuccess story of the 1990s was not driven by highenrollment at local colleges and universities. At that

    time job polarization stalled and educationalattainment improved, because Oregon was able toattract many valuable firms and skilled workers to thearea.

    One important aspect along the education wagespectrum is to focus on the differences among similargroups (see Figure 7, next page). For example, evenamong the occupations that have a high concentrationof four year degrees, shown in Panel B, there isconsiderable wage variation. Computer Programmers,Doctors, Engineers, and Lawyers all earn more thand bl h id di d i l

    0%

    20%

    40%

    60%

    80%

    100%

    High Wage Upper Middle Lower Middle Low Wage

    Competitive Education Needed (2010-2020)Related Work Experience Bachelor's or Higher

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    lower formal educational requirements than the otherhigh-wage groups.

    Conversely, on the other end of the highly educated

    spectrum are occupations that, while certainly payingmore than the median statewide wage, do pay lessthan similar workers in other occupations. Amongthese are Scientists, Teachers, Community Service

    physical activities and human interaction. Not all ofthese skills are learned in the classroom. For exampleinstallation and repairmen typically learn on the joband/or through an apprenticeship program.

    This has important implications for creating andsustaining upper middle-wage jobs. One good way ofcategorizing these occupations is they are driven in

    Figure 7 Occupations, Wages and Education

    Panel A High School Degree or Less Panel B Bachelors Degree or Higher

    Biz / Finance

    AdminSupport

    HealthcarePractitioners

    Food Prep

    Trans.

    Arch / Eng

    Arts, Design,Ent

    Bldg Maint

    CommunityService

    Comp / Math

    Construction

    Ag

    Install &Repair

    Legal

    Management

    Production

    Protective

    Sales

    Scientists

    Teachers

    Personal Care

    HealthcareSupport

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    $70,000

    $80,000

    $90,000

    0% 10% 20% 30% 40% 50% 60% 70% 80%

    M e d i a n W a g e , 2 0 1 2

    Share with High School Degree or Less

    Biz / Finance

    Admin Support

    HealthcarePractitioners

    Food Prep

    Trans.

    Arch / Eng

    Arts, Design, Ent

    Bldg Maint

    CommunityService

    Comp / Math

    Construction

    Ag

    Install & Repair

    Legal

    Management

    Production

    Protective

    Sales

    Scientists

    Teachers

    Personal Care

    HealthcareSupport

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    $70,000

    $80,000

    $90,000

    0% 15% 30% 45% 60% 75% 90%

    M e d i a n W a g e , 2 0 1 2

    Share with Bachelor's Degree or Higher

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    the Oregon labor market has shrunk from 51 percentof all jobs in 1980 to just 42 percent today. This is dueto outright losses in Production (manufacturing),slower than average gains in Administrative Supportand effectively flat employment in Transportation andMaterial Moving. These occupations tend to performmore routine and repetitive tasks that require lessabstract thinking than other groups. Withadvancements in technology and automation, theseoccupations are being eliminated and replaced withcomputers and programs. Production andTransportation jobs also require less in terms offormal education with over half of all employeesobtaining a high school degree or less and not quite10 percent having obtained at least a bachelorsdegree.

    Jobs in the Health Support and Sales occupationalgroups have increased faster than average over the

    past thirty years and these occupations tend to requiremore in terms of formal education than their lowermiddle-wage peers. Forty percent of workers withinSales have an associates degree or at least somecollege while 57 percent of Health Support workersdo.

    While the upper middle-wage jobs can be consideredas being driven by population growth, these lowermiddle-wage jobs can broadly be considered asbusiness support occupations. Administrative Support,Sales and Transportation all act as suppliers of labor

    requirements for low-wage work are general physicalactivities and/or face-to-face interaction withcustomers and co-workers. While the educationalrequirements are generally minimal, theseoccupations have been harder for businesses toautomate given the required interaction ornonrepetitive manual labor. Demand for theseservices (and workers to provide the services) isexpected to increase faster than most occupations arethe economy continues to recover and expand.

    A key question moving forward is whether the comingdecades in Oregon will be more like the 1990s or the2000s. Our offices economic outlook for the state inthe next decade is somewhere in between thesebenchmarks. The expansion is projected to continueand even gather steam in the coming years; howeverthe rate of growth at least in terms of employment will not reach the rates seen in previous expansions in

    the state.

    For more information on educational attainment byoccupation, please see Appendix B.

    Transitions are not Costless

    Investments in equipment and technology on the partof Oregons firms also lead to higher wages for local

    workers. Although it is often the case that investmentsin equipment and technology lead to the need forfewer employees, the workers that remain becomemore productive and valuable and their jobs more

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    job, particularly if the displaced worker has to retrainfor a different career path or relocate.

    An example of such a transition is the recreationalvehicle (RV) manufacturing industry in Oregon. Theindustry lost nearly 80 percent of its jobs during theGreat Recession of which many were high-paying andhigh-skill. Through wage records, the OregonEmployment Department 11 was able to track theseformer RV employees over time as they found adifferent job. Overall the median wage for former RV

    workers declined 11 percent from the wage earnedwhile working in the RV industry to their currentposition four years later. Approximately one-third ofthese workers saw a wage gain during this transition,however for the nearly two-thirds who saw wagereductions, the median loss was 27 percent or over$8,700 on an annual, full-time basis.

    However, new jobs are disproportionately beingcreated in other industries or occupations. Theconventional wisdom in recent years is that both theU.S. and Oregon economies are losing middle-wageoccupations and are replacing these jobs with low-wage ones. This is undoubtedly true as far as it goes,however the economy is also disproportionatelycreating high-wage occupations as well. This last factis either not part of the general conversation of thechanging nature of the economy or the conventionalwisdom, however is a major component of jobpolarization overall.

    There are a number of contributing factors to thispolarization including the effects of both technologyand globalization. Given the outlook for growth acrossoccupations, job polarization is expected to continuein Oregon throughout this decade.

    With that being said, not all hope is lost. Oregon hasmany comparative advantages that can be maintainedand improved through investment. Oregon enjoyslong-term advantages of low electricity costs, partiallydue to the regions renewable hydroelectricity, acentral location between the large markets ofCalifornia, Vancouver, B.C. and Asia, abundant andclean water, low business rents and living costs, andan increasingly diverse industrial base. Theseadvantages, along with an increasingly educatedpopulation and the proven ability to attract youngmigrants provide growth opportunities to help stem the0%

    5%

    10%

    15%

    20%

    25%

    $ 8

    $ 8

    1 0

    1 2

    1 4

    1 6

    1 8

    2 0

    2 2

    2 4

    2 6

    2 8

    3 5

    4 0

    5 0

    5 0

    Former RV Workers Take A Pay CutDistribution of Hourly Earnings

    2007q3 (RV Manufacturing)

    2011q3 (Different Industry)

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    The author would like to thank the Federal ReserveBank of New York for their data assistance and boththe Oregon Employment Department and theLegislative Revenue Office for valuable comments ont he report. Additional thanks to Oregons StateEconomist, Mark McMullen, for substantial commentsand edits and also to Oregons State Demographer,Kanhaiya Vaidya, for data assistance on theeducational attainment by occupation in Oregon.

    References:

    The Skill Content of Recent Technological Change: An Empirical Exploration. Quarterly Journal ofEconomics, 118(4), November 2003, 1279-1334.David Autor, Frank Levy and Richard Murnane.http://economics.mit.edu/faculty/dautor/data/autlevmur n03

    The Trend is the Cycle: Job Polarization and JoblessRecoveries. March 31, 2012. Nir Jaimovich, DukeUniveristy and Henry E. Siu, University of BritishColumbia.http://faculty.arts.ubc.ca/hsiu/research/polar20120331.pdf

    The Polarization of Job Opportunities in the U.S.Labor Market. David Autor, MIT Department of

    Economics and NBER. April 2010. Jointly released byThe Center for American Progress and The HamiltonProject. http://economics.mit.edu/files/5554

    Regional Economic Press Briefing on Job Polarizationand Rising Inequality. Jaison R. Abel and RichardDeitz. Federal Reserve Bank of New York. May 30,2012.http://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.html

    Data Sources:

    Census occupational data provided by the Federal

    Reserve Bank of New York.Educational attainment data from the CensusBureaus American Community Survey, Public UseMicrodata Sample , for 2009-2011.

    Occupational data from the U.S. Bureau of LaborStatistics. http://www.bls.gov/oes/oes_dl.htm

    Oregons Occupational Projections data from theOregon Employment Department.http://www.qualityinfo.org/pubs/projections/projections.pdf

    http://economics.mit.edu/faculty/dautor/data/autlevmurn03http://economics.mit.edu/faculty/dautor/data/autlevmurn03http://economics.mit.edu/faculty/dautor/data/autlevmurn03http://faculty.arts.ubc.ca/hsiu/research/polar20120331.pdfhttp://faculty.arts.ubc.ca/hsiu/research/polar20120331.pdfhttp://faculty.arts.ubc.ca/hsiu/research/polar20120331.pdfhttp://economics.mit.edu/files/5554http://economics.mit.edu/files/5554http://economics.mit.edu/files/5554http://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://www.bls.gov/oes/oes_dl.htmhttp://www.bls.gov/oes/oes_dl.htmhttp://www.bls.gov/oes/oes_dl.htmhttp://www.qualityinfo.org/pubs/projections/projections.pdfhttp://www.qualityinfo.org/pubs/projections/projections.pdfhttp://www.qualityinfo.org/pubs/projections/projections.pdfhttp://www.qualityinfo.org/pubs/projections/projections.pdfhttp://www.qualityinfo.org/pubs/projections/projections.pdfhttp://www.bls.gov/oes/oes_dl.htmhttp://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://libertystreeteconomics.newyorkfed.org/2012/05/just-released-regional-press-briefing-on-job-polarization-and-rising-inequality.htmlhttp://economics.mit.edu/files/5554http://faculty.arts.ubc.ca/hsiu/research/polar20120331.pdfhttp://faculty.arts.ubc.ca/hsiu/research/polar20120331.pdfhttp://economics.mit.edu/faculty/dautor/data/autlevmurn03http://economics.mit.edu/faculty/dautor/data/autlevmurn03
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    Appendix A: Occupational Group Summaries

    For a complete list of all occupations, please see the U.S. Bureau of Labor Statistics website:http://www.bls.gov/soc/2010/soc_alph.htm

    Management (SOC 11-0000): Chief Executives, Managers, Administrators and Directors of all industries andbusiness types, Legislators

    Business/Finance (SOC 13-0000): Accountants, Appraisers, Budget, Credit and Financial Analysts,Underwriters, Loan Officers, Tax Professionals, Buyers, Purchasing Agents, Claims Adjusters, ComplianceOfficers, Cost Estimators, Human Resources, Market Research

    Computer/Math (SOC 15-0000): Computer Systems and Programmers, Software Developers, Database Administrators, Web Developers, Actuaries, Statisticians, Mathematical Technicians

    Engineers/Architects (SOC 17-0000): Architects, Surveyors, Engineers, Drafters

    Scientists/Social Scientists (SOC 19-0000): Food, Soil, Life, Medical, Materials and Physical Scientists,Zoologists, Foresters, Physicists, Chemists, Economists, Psychologists, Planners, Biological and ChemicalTechnicians, Research Assistants, Forensic Science

    Community Service (SOC 21-0000): Counselors, Therapists, Social Workers, Treatment and Social Specialists,Clergy, Religious Workers

    Legal (SOC 23-0000): Lawyers, Law Clerks, Judges, Adjudicators, Arbitrators, Paralegals, Court Reporters, TitleExaminers, Legal Support Workers

    Teachers (SOC 25-0000): Primary, Secondary and Postsecondary Teachers including Special Education, Archivists, Curators, Museum Technicians, Librarians, Teacher Assistants

    Arts/Entertainment (SOC 27-0000): Art Directors, Craft, Fine and Multimedia Artists, Fashion, Floral, Graphic,Interior and Set Designers, Actors, Producers, Athletes, Coaches, Referees, Dancers, Choreographers, Radioand Television Announcers, Reporters, Editors, Writers, Interpreters, Broadcast Technicians, Photographers

    http://www.bls.gov/soc/2010/soc_alph.htmhttp://www.bls.gov/soc/2010/soc_alph.htmhttp://www.bls.gov/soc/2010/soc_alph.htm
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    Sales (SOC 41-0000): Cashiers, Rental Clerks, Advertising, Insurance Sales, Financial Services Agents, Travel Agents, Sales Representatives, Models, Real Estate Brokers and Agents, Telemarketers

    Office Support (SOC 43-0000): Bill and Account Collectors, Bookkeeping, Payroll, Procurement, Tellers,Customer Service Representatives, File, Hotel Desk, New Accounts, Office and Order Clerks, Receptionists,Couriers, Emergency Dispatchers, Meter Readers, Postal Service, Shipping, Receiving and Stock Clerks,Executive, Legal and Medical Secretaries, Data Entry

    Farming (SOC 45-0000): Agricultural Inspectors, Graders, Sorters, Equipment Operators, Farmworkers,Laborers, Forest and Conservation, Fallers, Logging

    Construction (SOC 47-0000): Brick and Stone Masons, Carpenters, Floor Layers, Tile Setters, ConstructionLaborers, Paving, Drywall, Electricians, Insulation, Painters, Plumbers, Roofers, Sheet Metal, Helpers, BuildingInspectors, Highway Maintenance, Septic Tank Servicers

    Installation/Repair (SOC 49-0000): Repair and/or Installation of Machines, Motors, Electronics, Automobiles,Glass, Boats, Tires, Security Systems, HVAC, Appliance, Bicycles, Watches and Telecommunications,Mechanics, Locksmiths

    Production (SOC 51-0000): Inspectors, Testers, Sorters, Team Assemblers, Fabricators, Welders, Machinists,

    Electrical Equipment Assemblers, Cabinetmakers, Semiconductor Processors, Bakers, Laundry and Dry-Cleaning, Butchers, Water Treatment Plants, Sewing

    Transportation (SOC 53-0000): Truck Drivers, Taxis, Pilots, Air Traffic Controllers, Bus Drivers, Sailors, ParkingLot and Service Station Attendants, Freight, Stock and Material Laborers, Packers and Packagers, Refuse andRecyclable Collectors

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    Appendix B: Median Wages and Educational Attainment

    High-wage OccupationsManagement $84,320Healthcare Practitioners $73,950Legal $72,930

    Architecture & Engineering $72,060Com puter & Mathem atical $71,220Business & Finance $58,310Scientis ts , including Social $55,370

    Upper Middle-wage OccupationsConstruction $45,550Teachers $44,250Protective Service $43,780Installation & Repair $43,710

    Arts & Entertainment $41,800

    Community Service $40,480

    Lower Middle-wage Occupations Adminis trative Support $32,690Production $32,530Transportation $29,960Healthcare Support $29,790

    Sales $27,360

    Low-wage Occupations

    Oregon Median Wage, 2012

    4.8

    5.7

    8.07.5

    5.7

    4.8

    8.0

    11.0

    10.4

    16.530.9

    31.8

    21.7

    28.7

    28.4

    42.6

    50.754.9

    56.2

    12.4

    18.5

    19.522.3

    28.6

    32.9

    31.7

    29.6

    32.9

    34.337.3

    41.0

    53.8

    51.1

    56.9

    43.6

    37.636.1

    35.7

    82.9

    75.8

    72.570.1

    65.7

    62.3

    60.3

    59.5

    56.7

    49.231.9

    27.2

    24.5

    20.1

    14.8

    13.8

    11.89.0

    8.1

    0% 20% 40% 60% 80% 100%

    Scientists

    Teachers

    LegalCommunity Service

    Engineer/Arch

    Healthcare Practitioners

    Computer / Math

    Arts, Design, Ent

    Business, Finance

    ManagementTotal

    Sales

    Protective Services

    Admin Support

    Heathcare Support

    Personal Care

    Food PrepProduction

    Transportation

    Bld Cl i & M i

    Educational Attainment by Occupation2009-11 American Community Survey

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    Appendix C: Employment by Occupational Group, 1980-2010

    Level % Level %High-wage Occupations

    Legal 423,100 4,560 814,091 7,946 1,180,514 12,301 1,435,413 14,439 1,012,313 239% 9,879 217%

    Com puter & Mathem atical 622,700 5,800 1,359,787 12,072 3,093,705 33,851 3,426,170 39,190 2,803,470 4 50% 33,390 576% Architecture & Engineering 2,660,800 28,080 3,260,753 31,097 2,702,712 36,052 2,620,312 33,845 (40,488) -2% 5,765 21%Management 6,828,000 83,780 9,157,432 104,434 10,417,206 129,395 12,300,815 151,341 5,472,815 80% 67,561 81%Sci en ti sts , in cl ud in g So ci al 6 67 ,1 00 8,700 901,626 11,408 987,442 13,722 992,485 14,467 325,385 49% 5,767 66%

    Business & Finance 2,389,500 25,640 3,882,914 40,580 4,813,379 52,625 5,591,650 61,658 3,202,150 1 34% 36,018 140%H ea lth ca re Pra cti ti on ers 2 ,9 75 ,8 00 33,340 4,394,491 47,300 5,383,270 58,945 6,933,865 76,162 3,958,065 1 33% 42,822 128%

    Upper Middle-wage Occupations

    Installation & Repair 3,474,700 39,280 3,701,477 40,803 4,510,747 53,530 4,091,169 47,781 616,469 18% 8,501 22%Protective Service 1,435,600 14,620 1,950,630 18,711 2,497,830 24,783 3,083,156 28,618 1,647,556 1 15% 13,998 96%Teachers 4,458,800 52,640 5,434,987 64,651 7,558,371 91,079 9,127,694 108,634 4,668,894 1 05% 55,994 106%

    Arts & Entertainment 806,300 9,640 1,281,808 16,730 1,798,166 24,332 1,901,271 25,561 1,094,971 1 36% 15,921 165%

    Construction 3,797,800 42,380 4,151,863 41,685 4,723,603 59,453 4,402,518 42,986 604,718 16% 606 1%Community Service 740,400 10,760 1,053,944 13,475 1,332,935 17,465 1,663,422 23,095 923,022 1 25% 12,335 115%

    Lower Middle-wage Occupations

    Production 12,668,500 119,360 11,246,035 120,049 10,671,011 129,434 8,486,633 90,505 (4,181,867) -33% (28,855) -24% Adminis trative Support 16,000,00 0 174,400 18,100,000 188,494 19,995,120 236,312 19,765,290 231,006 3,765,290 24% 56,606 32%Sales 8,295,800 105,100 11,800,000 134,449 12,992,499 163,906 14,352,421 174,533 6,056,621 73% 69,433 66%

    Transportation 8,164,600 102,180 8,655,123 112,919 8,746,504 114,326 9,574,784 104,252 1,410,184 17% 2,072 2%Healthcare Support 1,606,500 16,460 1,952,356 21,637 2,519,959 34,087 4,129,200 61,776 2,522,700 1 57% 45,316 275%

    Low-wage Occupations

    Building Maintenance 1,904,000 23,480 2,158,078 22,950 1,975,985 25,048 2,594,655 27,262 690,655 36% 3,782 16%Farming and Related 1,475,100 33,760 1,681,830 39,991 1,956,131 42,132 2,530,694 56,438 1,055,594 72% 22,678 67%Personal Care 2,216,100 26,440 2,207,250 25,200 3,298,978 37,901 4,416,404 55,123 2,200,304 99% 28,683 108%

    Food Preparation 3,906,100 56,520 4,625,327 63,029 5,596,826 75,024 7,559,162 100,068 3,653,062 94% 43,548 77%

    Total 87,517,300 1,016,920 103,771,802 1,179,610 118,752,893 1,465,703 130,979,183 1,568,740 43,461,883 50% 551,820 54%

    Source: U.S. Census Bureau, Federal Reserve Bank of New Y ork

    U.S.OregonU.S.OregonU.S.

    1980-2010OregonU.S.OregonU.S.Oregon

    2010200019901980