"This paper provides first empirical evidence on the effect of technological exposure on local labour markets in Spain. The analysis combines the Spanish Labour Force Survey for the years 1994 and 2008, and the O*Net. The identification strategy exploits spatial variation in the exposure to technological progress which arises due to initial regional specialization in routine task-intensive activities. Results confirm that technology partially explains the decline of middle-paid workers, and its subsequent relocation at the bottom part of the employment distribution. However - and different to the US - technology does not explain the increase found at the top of the employment distribution."

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