Implications of Skill-Biased Technological Change: International Evidence

41 Pages Posted: 22 Jun 1998

See all articles by Eli Berman

Eli Berman

University of California, San Diego (UCSD) - Department of Economics; National Bureau of Economic Research (NBER)

John Bound

University of Michigan; National Bureau of Economic Research (NBER)

Stephen J. Machin

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

Multiple version iconThere are 3 versions of this paper

Date Written: April 1998

Abstract

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. The more countries experiencing a SBTC the greater its potential to decrease local demands for unskilled labor by increasing the world supply of unskilled-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 premia, a pattern consistent with SBTC.

JEL Classification: F1, J31, O3

Suggested Citation

Berman, Eli and Bound, John and Machin, Stephen J., Implications of Skill-Biased Technological Change: International Evidence (April 1998). NBER Working Paper No. 6166. Available at SSRN: https://ssrn.com/abstract=89488 or http://dx.doi.org/10.2139/ssrn.89488

Eli Berman (Contact Author)

University of California, San Diego (UCSD) - Department of Economics ( email )

9500 Gilman Drive
La Jolla, CA 92093-0508
United States
858-534-2858 (Phone)
858-534-7040 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

John Bound

University of Michigan ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States
313-998-7149 (Phone)
313-998-7415 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Stephen J. Machin

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

Houghton Street
London WC2A 2AE
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
261
Abstract Views
2,212
rank
96,067
PlumX Metrics