This paper documents how plant-level wages, occupational mix, workforce education, and productivity vary with the adoption and use of new factory automation technologies, such as programmable controllers, computer-automated design, and numerically controlled machines. The authors' cross-sectional results show that plants that use a large number of new technologies employ more educated workers; employ relatively more managers, professionals, and precision-craft workers; and pay higher wages. However, their longitudinal analysis shows little correlation between skill and upgrading and the adoption of new technologies. It appears that plants that adopt new factory automation technologies may have more skilled workforces both pre- and postadoption. Copyright 1997, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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