The Nature of Technological Change 1960-2016
Open Access
- 26 November 2024
- report
- Published by Federal Reserve Bank of Cleveland
- No. 24-28
Abstract
We present a unified technological explanation of both the movement of workers across jobs using different skills and the changes in skill use within jobs. An envelope-theorem approach allows us to estimate relative skill-productivity growth from worker mobility using OLS while making minimal assumptions on each occupation's production function. Using six decades of data, we conclude that routine-cognitive- and finger-dexterity-skill productivity grew rapidly and abstract- and social-skill productivity grew slowly - a form of "skill bias." These effects, along with our estimated relationships between skill inputs, also explain changes in skill use within occupations.Keywords
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