Skill-biased technological change
has indirectly increased the wages of workers with manual, creative jobs (such as chefs and landscapers) as growing income earned by highly skilled technology workers have boosted the demand for certain labor-intensive services.
They attribute the increasing skill demand to skill-biased technological change
Goldin and Katz also note that computerization, which is form of skill-biased technological change
, has affected the relative demand for skill in a different manner than other such technological changes.
For most of the past century, skill-biased technological change
increased the relative demand for skill in a rather monotonic manner across the wage distribution.
While there remains some disagreement as to the significance of each of these mechanisms, a general consensus has formed around one particular theory: skill-biased technological change
They attribute the changing employment mix of the 1980s to skill-biased technological change
that has been labor-saving as it pertains to unskilled workers.
The skill-biased technological change
induced a boost in the relative demand for skilled employees, which was balanced by an increase in the skill premium and a relative vivification of the less skill-intensive branches.
The generally accepted hypothesis among labor economists is that skill-biased technological change
has increased the relative demand for skilled workers, causing the observed increase in earnings inequality in the 1980s (Council of Economic Advisers 1997; Katz and Autor 1999).
The authors present a model with imported intermediate goods in which the relative wages of skilled labor can rise due to higher imports of inputs or due to skill-biased technological change
While lending some support to the skill-biased technological change
thesis, these industry studies show the value of understanding the way new technology meshes with the increased customer segmentation and other structural shifts taking place in these industries.
demographic characteristics and institutional events such as union decline) is assumed to result from skill-biased technological change
For example, Feenstra and Hanson (1995 and 1996) claim that increased imports explain much of the rise in US inequality; Machin and Van Reenen (1998) find that the main cause is skill-biased technological change
; and Haskel and Slaughter (1997) argue that it is the sectoral bias of skill-biased technological change