@techreport{NBERw10728, title = "Technical Change and the Wage Structure During the Second Industrial Revolution: Evidence from the Merchant Marine, 1865-1912", author = "Aimee Chin and Chinhui Juhn and Peter Thompson", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "10728", year = "2004", month = "September", URL = "http://www.nber.org/papers/w10728", abstract = {Using a large, individual-level wage data set, we examine the impact of a major technological innovation the steam engine on skill demand and the wage structure in the merchant shipping industry. We find that the technical change created a new demand for skilled workers, the engineers, while destroying demand for workers with skills relevant only to sail. It had a deskilling effect on production work able-bodied seamen (essentially, artisans) were replaced by unskilled engine room operatives. On the other hand, mates and able-bodied seamen employed on steam earned a premium relative to their counterparts on sail. A wholesale switch from sail to steam would increase the 90/10 wage ratio by 40%, with most of the rise in inequality coming from the creation of the engineer occupation.}, }