Due to strict reliance on competitive labor markets, standard approaches which measure skill biased technical change (SBTC) conflate labor market distortions which prevent firms from choosing the efficient ratio between skilled and unskilled labor and `true' SBTC. This contrasts with recent...

Economic literature has so far produced very limited (country-level only) evidence on the magnitude of skilled biased technical change (SBTC) and not investigated at all the extent to which, coupled with labor market imperfections, it can be associated to an inefficient use of labor. We present...