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Technical Change and the Relative Demand for Skilled Labor: The United States in Historical Perspective

In: Human Capital in History: The American Record

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  • Lawrence F. Katz
  • Robert A. Margo

Abstract

This paper examines shifts over time in the relative demand for skilled labor in the United States. Although de-skilling in the conventional sense did occur overall in nineteenth century manufacturing, a more nuanced picture is that occupations "hollowed out": the share of "middle-skill" jobs - artisans - declined while those of "high-skill" - white collar, non-production workers - and "low-skill" - operatives and laborers increased. De-skilling did not occur in the aggregate economy; rather, the aggregate shares of low skill jobs decreased, middle skill jobs remained steady, and high skill jobs expanded from 1850 to the early twentieth century. The pattern of monotonic skill upgrading continued through much of the twentieth century until the recent "polarization" of labor demand since the late 1980s. New archival evidence on wages suggests that the demand for high skill (white collar) workers grew more rapidly than the supply starting well before the Civil War.
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Suggested Citation

  • Lawrence F. Katz & Robert A. Margo, 2014. "Technical Change and the Relative Demand for Skilled Labor: The United States in Historical Perspective," NBER Chapters, in: Human Capital in History: The American Record, pages 15-57, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:12888
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    References listed on IDEAS

    as
    1. Atack, Jeremy & Bateman, Fred & Margo, Robert A., 2008. "Steam power, establishment size, and labor productivity growth in nineteenth century American manufacturing," Explorations in Economic History, Elsevier, vol. 45(2), pages 185-198, April.
    2. Atack, Jeremy & Bateman, Fred & Margo, Robert A., 2004. "Skill Intensity and Rising Wage Dispersion in Nineteenth-Century American Manufacturing," The Journal of Economic History, Cambridge University Press, vol. 64(1), pages 172-192, March.
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • N11 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: Pre-1913
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-

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