Can a More Nuanced View of Skill Biased Technological Change
Explain the Recent Changes in Wage Inequality ?
Maarten Goos
Alan Manning
A secular increase in the demand for high-wage workers driven by
skill-biased technological change (SBTC) has difficulties in explaining what
happened to US and UK wage inequality in the 1990’s. In particular, SBTC
predicts a continuing increase in the relative wage and employment of high wage
workers and therefore cannot explain the deceleration of growth in lower tail
inequality since the late 1980’s. But this paper suggests that a more nuanced
view of SBTC recently proposed by Autor, Levy and Murnane (2003) (ALM) goes
some distance towards explaining the absence of further growth in lower tail
inequality together with further growth in upper tail inequality in the
1990’s.
Keywords :
Labour Demand and Technology, Inequality, J210.
• Introduction
• The rise in non-routine jobs
• Task intensity by wage percentiles
• Can a more nuanced view of skill biased technological change
explain the recent changes in wage inequality ?
• Conclusions
• References