TY - JOUR AU - Chin,Aimee AU - Juhn,Chinhui AU - Thompson,Peter TI - Technical Change and the Wage Structure During the Second Industrial Revolution: Evidence from the Merchant Marine, 1865-1912 JF - National Bureau of Economic Research Working Paper Series VL - No. 10728 PY - 2004 Y2 - September 2004 UR - http://www.nber.org/papers/w10728 L1 - http://www.nber.org/papers/w10728.pdf N1 - Author contact info: Aimee Chin University of Houston Department of Economics 204 McElhinney Hall Houston, TX 77204-5019 Tel: 713/743-3761 Fax: 713/743-3798 E-Mail: achin@uh.edu Chinhui Juhn Department of Economics University of Houston Houston, TX 77204-5882 Tel: 713/743-3823 Fax: 713/743-3798 E-Mail: cjuhn@uh.edu Peter Thompson Goizueta Business School Emory Universityy 1300 Clifton Road Atlanta, GA 30322-2710 Tel: (305) 394-7408 E-Mail: peter.thompson@emory.edu AB - 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. ER -