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The Evolution of Skill-Biased Effects on American Wages in the 1980s and 1990s.
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- Author(s): Englehardt, Steven1
- Source:
Journal of Labor Research. Jun2009, Vol. 30 Issue 2, p135-148. 14p. 6 Charts, 1 Graph.- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: This study estimates the contributions of skill-biased technological change and international trade to the rise in the skill premium during the 1980s and 90s using the Feenstra and Hanson (Q J Econ 114(3):907--940, ) two-stage methodology. Newly available data on high-technology capital provide separate measures of computer and software investment. New estimates suggest that investment in software contributed to a substantial portion of the observed increase in the skill premium while investment in computers lead to a reduction in the rate of skill premium growth. Contrary to the findings of Feenstra and Hanson for the 1980s, neither software nor computers had a significant effect on wages during the 1980s. Foreign outsourcing does not appear to have significantly affected wages during the 1990s. The contribution to theory is that software is more complementary to increases in worker productivity due to human skills. Computers, on the other hand, reduced the growth of wage inequality by giving unskilled labor a more efficient set of tools with which to work. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Journal of Labor Research is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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