A State of Art Review on the Impact of Technology on Skill Demand in OECD Countries

By extensively reviewing empirical research findings which have been published from the late 1980s to date or are due to be published shortly, this paper attempts to examine changes in skill demand in OECD countries and the impact of technology development on the changes in skill demand. In contrast with previous studies, which painted a complex and inconsistent picture of the direction of skill changes, most of the more recent studies have consistently presented the upskilling trend in the OECD economy. We can find evidence in support of the argument that the adoption and implementation of new technology raise the skill level required of the workforce as well as evidence that higher workforce skills promote the adoption and successful implementation of new technology. The upskilling effect of technology is likely to be higher for jobs requiring a high level of skill than for those requiring a low level of skill. There appears to be a positive association between information technology and upskilling, whereas this is not necessarily the case with automation technology.