COMPUTING INEQUALITY - HAVE COMPUTERS CHANGED THE LABOR-MARKET

This paper examines the effect of skill-biased technological change as measured by computerization on the recent widening of U.S. educationa l wage differentials. An analysis of aggregate changes in the relative supplies and wages of workers by education from 1940 to 1996 indicate s strong and persistent growth in relative demand favoring college gra duates. Rapid skill upgrading within detailed industries accounts for most of the growth in the relative demand for college workers, particu larly since 1970. Analyses of four data sets indicate that the rate of skill upgrading has been greater in more computer-intensive industrie s.