We Can Work it Out: The Impact of Technological Change on the Demand for Low-Skill Workers

28 Pages Posted: 2 Nov 2004

See all articles by Alan Manning

Alan Manning

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

Abstract

There is little doubt that technology has had the most profound effect on altering the tasks that we humans do in our jobs. Economists have long speculated on how technical change affects both the absolute demand for labour as a whole and the relative demands for different types of labour. In recent years, the idea of skill-biased technical change has become the consensus view about the current impact of technology on labour demand, namely that technical change leads to an increase in the demand for skilled relative to unskilled labour painting a bleak future for the employment prospects of less-skilled workers. But, drawing on a recent paper by Autor, Levy and Murnane (2003) about the impact of technology on the demand for different types of skills, this paper argues that the demand in the least-skilled jobs may be growing. But, it is argued that employment of the less-skilled is increasingly dependent on physical proximity to the more-skilled and may also be vulnerable in the long-run to further technological developments.

Suggested Citation

Manning, Alan, We Can Work it Out: The Impact of Technological Change on the Demand for Low-Skill Workers. Scottish Journal of Political Economy, Vol. 51, No. 5, pp. 581-608, November 2004. Available at SSRN: https://ssrn.com/abstract=610474

Alan Manning (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

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