NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles

David Card, John E. DiNardo

NBER Working Paper No. 8769
Issued in February 2002
NBER Program(s):Labor Studies

The rise in wage inequality in the U.S. labor market during the 1980s is usually attributed to skill-biased technical change (SBTC), associated with the development of personal computers and related information technologies. We review the evidence in favor of this hypothesis, focusing on the implications of SBTC for economy-wide trends in wage inequality, and for the evolution of wage differentials between various groups. A fundamental problem for the SBTC hypothesis is that wage inequality stabilized in the 1990s, despite continuing advances in computer technology. SBTC also fails to explain the closing of the gender gap, the stability of the racial wage gap, and the dramatic rise in education-related wage gaps for younger versus older workers. We conclude that the SBTC hypothesis is not very helpful in understanding the myriad shifts in the structure of wages that have occurred over the past three decades.

download in pdf format
   (282 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8769

Published: Card, David and John E. DiNardo. "Skill-Based Technological Change And Rising Wage Inequality: Some Problems And Puzzles," Journal of Labor Economics, 2002, v20(4,Oct), 733-783. citation courtesy of

Users who downloaded this paper also downloaded* these:
Berman, Bound, and Machin w6166 Implications of Skill-Biased Technological Change: International Evidence
Haskel and Slaughter w6565 Does the Sector Bias of Skill-Biased Technical Change Explain Changing Wage Inequality?
Autor, Katz, and Kearney w11628 Rising Wage Inequality: The Role of Composition and Prices
Goldin and Katz w12984 The Race between Education and Technology: The Evolution of U.S. Educational Wage Differentials, 1890 to 2005
Heathcote, Storesletten, and Violante w14052 The Macroeconomic Implications of Rising Wage Inequality in the United States
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us