Was Mechanization De-Skilling? The Origins of Task-Biased Technical Change

James Bessen

Working Papers from Research on Innovation

Abstract: Did nineteenth century technology reduce demand for skilled workers in contrast to modern technology? I obtain direct evidence on human capital investments and the returns to skill by using micro-data on individual weavers and an engineering production function. Weavers learned substantially on the job. While mechanization eliminated some tasks and the associated skills, it increased returns to skill on the remaining tasks. Technical change was task-biased, much as with computer technology. As more tasks were automated, weavers’ human capital increased substantially. Although technology increased the demand for skill like today, weavers’ wages eventually increased and inequality decreased, contrary to current trends.

Keywords: skill-biased technical change; technology; mechanization; human capital; wage inequality; learning-by-doing (search for similar items in EconPapers)
JEL-codes: J31 N31 O33 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-his, nep-hrm and nep-lab
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:roi:wpaper:1101

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