Skilled labor -- augmenting technical progress in U.S. manufacturing

James A Kahn () and Jong-Soo Lim

No 9738, Research Paper from Federal Reserve Bank of New York

Abstract: This paper examines the role of skilled labor in the growth of total factor productivity. We use panel data from manufacturing industries within the United States to assess the extent to which productivity growth in yearly cross-sections of U.S. manufacturing industries is tied to industry shares of skilled labor inputs. We find evidence of an explosion in skilled-labor augmenting technological progress during the period from approximately 1972 to 1981, which precedes a period of suddenly increasing wage inequality and rapid growth in the relative wages of educated and experienced workers. We also provide evidence from aggregate manufacturing data that confirm this shift pre- and post-1972, and show that all of the findings are broadly consistent with the behavior of relative wages and employment.

Keywords: Labor productivity; Technology; Manufactures (search for similar items in EconPapers)
Date: 1997
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Related works:
Working Paper: Skilled Labor-Augmenting Technical Progress in U.S. Manufacturing (1997)
Working Paper: Skilled labor-augmenting technical progress in U.S. manufacturing (1998)
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