What are the effects of job polarization on skills distribution of young workers in developing countries?

One of the most discussed topics in the domain of labour economics during the last couple of decades has been the polarization of employment in industrialized countries, namely the growth of high and low paying jobs and the decline of jobs paying wages around the middle of the wage distribution.

Economists identify two main reasons for this phenomenon, the first one being technological progress and the second one the globalization of the world economy. Both factors have contributed to changes in the distribution of skills demanded by employers in the labour markets of industrialized countries.