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Benjamin Hilgenstock and Zsoka Koczan
The paper examines the evolution and drivers of labor force participation in European regions, focusing on the effects of trade and technology. As in the United States, rural regions within European countries saw more pronounced declines (or smaller increases) in participation than urban regions. Unlike in the United States, however, trade and technology, captured here using novel measures of initial exposures to routinization and offshoring, did not result in detachment from the workforce in European regions. Instead, regions with high initial exposures to routinization and offshoring experienced so-far larger increases in participation, likely driven by an added second worker effect.
Benjamin Hilgenstock and Zsoka Koczan

regions below the 25 th percentile of the exposure to offshoring distribution (agricultural regions with low routinization scores, as mentioned above) saw declines in participation ( Figure 17 , panel 2). Figure 16. Contributions to Changes in Labor Force Participation Rates, 2000–2016 (Percentage points) Source: Authors’ calculations. Figure 17. Contributions of Exposures to Routinization and Offshoring and Changes in Labor Force Participation Rates Sources: Authors’ calculations. Note: Bars in both panels show relative contributions of