Technology and Changes in Skill Structure: Evidence from an International Panel of Industries
AbstractThis paper examines the evidence that rapid upgrading of the skill structure in recent years was driven by technological change. Four countries are examined who have had different wage inequality and unemployment trends – Denmark, Sweden, the United Kingdom and the United States. The analysis of changes in wage bill shares and employment shares of more skilled workers leads us to the following conclusions: (i) within-industry changes are the driving force of aggregate shifts across all four countries; (ii) there is evidence of skill-biased technical change and capital-skill complementarity in all four countries; (iii) the results are robust to using education instead of occupation as a measure of skill, and computerization instead of R&D as a measure of technology; (iv) in the Anglo-Saxon countries a maximum of one-third of the aggregate change in the skill structure can be accounted for purely by technological factors; (v) the decline of collective bargaining, rather than trade, in the United Kingdom and the United States is an important factor in explaining the changes.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1434.
Date of creation: Jul 1996
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Other versions of this item:
- Stephen Machin & A Ryan & John Van Reenen, 1996. "Technology and Changes in Skill Structure: Evidence from an International Panel of Industries," CEP Discussion Papers dp0297, Centre for Economic Performance, LSE.
- Stephen Machin & Annette Ryan & John Van Reenen, 1996. "Technology and changes in skill structure: Evidence from an international panel of industries," IFS Working Papers W96/06, Institute for Fiscal Studies.
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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