Implications of Skill-Biased Technological Change: International Evidence*

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ID: 294998
1998
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Abstract
Demand for less-skilled workers plummeted in developed countries in the 1980s. In open economies, pervasive skill-biased technological change (SBTC) can explain this decline. SBTC tends to increase the domestic supply of unskill-intensive goods by releasing less-skilled labor. The more countries experiencing a SBTC, the greater its potential to decrease the relative wages of less-skilled labor by increasing the world supply of unskill-intensive goods. We find strong evidence for pervasive SBTC in developed countries. Most industries increased the proportion of skilled workers despite generally rising or stable relative wages. Moreover, the same manufacturing industries simultaneously increased demand for skills in different countries. Many developing countries also show increased skill premiums, a pattern consistent with SBTC.
Reference Key
openalex_W3125179269 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Eli Berman, John Bound, Stephen Machin
Journal the quarterly journal of economics
Year 1998
DOI
10.1162/003355398555892
URL
https://doi.org/10.1162/003355398555892
Keywords Keywords not found

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