Firm-Level Technological Change and Skill Demand

Attila Lindner (), Muraközy, Balázs (), Reizer, Balázs () and Ragnhild Schreiner ()
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Attila Lindner: University College London
Muraközy, Balázs: University of Liverpool
Reizer, Balázs: ELTE - Centre for Economic and Regional Studies
Ragnhild Schreiner: University of Oslo

No 18516, IZA Discussion Papers from IZA Network @ LISER

Abstract: We quantify the contribution of firm-level technological change to skill demand and aggregate inequality in the presence of imperfect competition in the labor market. We show that skill-biased technological change increases both the firm-level skill ratio and the skill premium, while other shocks (e.g. firm-specific output demand shocks) cannot explain the increase in both outcomes. We exploit administrative data and a large survey measuring a broad class of firm-level technological changes from Hungary and Norway. We estimate that the aggregate college premium increases by 3.4% in Norway and by 4.9% in Hungary as a result of the skill bias in technological change.

Keywords: skill-biased technological change; innovation; skill premiums; imperfect competition (search for similar items in EconPapers)
JEL-codes: J24 J31 O30 O33 (search for similar items in EconPapers)
Date: 2026-04
New Economics Papers: this item is included in nep-bec, nep-lma, nep-ltv and nep-tid
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