Recent empirical evidence establishes that a positive technology shock leads to a decline in labor inputs. Can a flexible price model enriched with labor market frictions replicate this stylized fact? We develop and estimate a standard flexible price model using Bayesian methods that allows, but...

Using national representative samples from population census and mini-census of China, this paper documents important employment dynamics in China from 1990 to 2015. The share of routine manual jobs decreased significant from 57% to 32%; both the share of routine cognitive jobs and the share of...