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Abstract: This paper reports direct evidence on how recent changes in technology are related to changes in wage differentials by schooling, experience, and gender. Wage differentials by industry in...
Abstract: This paper reports direct evidence on how recent changes in technology are related to changes in wage differentials by schooling, experience, and gender. Wage differentials by industry in the full- year 1979 and 1989 Current Population Surveys are related to R & D intensity, usage of high-tech capital, recentness of technology, growth in total factor productivity, and growth of the capital-labor ratio. Returns to schooling are larger in industries that are intensive in R & D and high-tech capital. Technology variables account for 30 percent of the increase in the wage gap between college and high school graduates.