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We can work it out: the impact of technological change on the demand for low skill workers

Alan Manning

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: There is little doubt that technology has had the most profound effect on altering the tasks that we humans do in our jobs. Economists have long speculated on how technical change affects both the absolute demand for labour as a whole and the relative demands for different types of labour. In recent years, the idea of skill-biased technical change has become the consensus view about the current impact of technology on labour demand, namely that technical change leads to an increase in the demand for skilled relative to unskilled labour painting a bleak future for the employment prospects of less-skilled workers. But, drawing on a recent paper by Autor, Levy and Murnane (2003) about the impact of technology on the demand for different types of skills, this paper argues that the demand in the least-skilled jobs may be growing. But, it is argued that employment of the less-skilled is increasingly dependent on physical proximity to the moreskilled and may also be vulnerable in the long-run to further technological developments.

Keywords: Labor Demand and Technology; Inequality (search for similar items in EconPapers)
JEL-codes: J21 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2004-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (126)

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http://eprints.lse.ac.uk/19948/ Open access version. (application/pdf)

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Journal Article: We Can Work It Out: The Impact of Technological Change on the Demand for Low‐Skill Workers (2004) Downloads
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