Working Paper

The Nature of Technological Change 1960-2016


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: skills; technological change;

JEL Classification: J24; O33;

https://doi.org/10.26509/frbc-wp-202428

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers

Publication Date: 2024-11-26

Number: 24-28