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November 1, 1998The Quarterly Journal of Economics1,845 citations

Computing Inequality: Have Computers Changed the Labor Market?

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DADavid AutorLKLawrence F. KatzAKAlan B. Krueger

Key Points

  • To determine whether skill-biased technological change, driven by computer adoption, contributed to the widening wage gap between educational levels in the United States.
  • Analyzed aggregate shifts in the relative supplies and wages of US workers stratified by educational attainment from 1940 to 1996.
  • Evaluated industry-level skill upgrading and computer usage across four distinct economic datasets.
  • Relative demand favoring college-educated workers grew persistently between 1940 and 1996, with demand growth accelerating substantially after 1970.
  • Skill upgrading within detailed individual industries accounted for the majority of the overall increase in demand for college-educated workers.
  • Industries characterized by greater computer intensity demonstrated significantly faster rates of educational skill upgrading.

Abstract

This paper examines the effect of skill-biased technological change as measured by computerization on the recent widening of U. S. educational wage differentials. An analysis of aggregate changes in the relative supplies and wages of workers by education from 1940 to 1996 indicates strong and persistent growth in relative demand favoring college graduates. Rapid skill upgrading within detailed industries accounts for most of the growth in the relative demand for college workers, particularly since 1970. Analyses of four data sets indicate that the rate of skill upgrading has been greater in more computer-intensive industries.

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Cite This Study

Autor et al. (1998) studied this question.

synapsesocial.com/papers/69debe8a6bae133e7de94e37https://doi.org/10.1162/003355398555874
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