Labor Market Hollowing-Out in North Carolina: Measurement and Analysis

Abstract

: Hollowing-out of the labor force, meaning the relative decline in middle-paying jobs combined with the relative rise in both high-paying and low-paying jobs, has been a phenomenon observed and analyzed at the national level. This paper extends that work by analyzing job shifts in 46 regions of North Carolina during the 21 st century. From 2001 to 2015, hollowing-out occurred in all but one of the regions, but to different degrees. An empirical analysis shows the relative decline of middle-paying jobs was stronger in regions with a larger share of employment in manufacturing and construction and in regions with slower population growth.