Key points are not available for this paper at this time.
Demand for less-skilled workers plummeted in developed countries in the 1980s. In open economies, pervasive skill-biased technological change (SBTC) can explain this decline. SBTC tends to increase the domestic supply of unskill-intensive goods by releasing less-skilled labor. The more countries experiencing a SBTC, the greater its potential to decrease the relative wages of less-skilled labor by increasing the world supply of unskill-intensive goods. We find strong evidence for pervasive SBTC in developed countries. Most industries increased the proportion of skilled workers despite generally rising or stable relative wages. Moreover, the same manufacturing industries simultaneously increased demand for skills in different countries. Many developing countries also show increased skill premiums, a pattern consistent with SBTC.
Building similarity graph...
Analyzing shared references across papers
Loading...
Eli Berman
John Bound
Stephen Machin
The Quarterly Journal of Economics
University College London
National Bureau of Economic Research
London School of Economics and Political Science
Building similarity graph...
Analyzing shared references across papers
Loading...
Berman et al. (Sun,) studied this question.
www.synapsesocial.com/papers/69d78f18d84d071b73f30858 — DOI: https://doi.org/10.1162/003355398555892