Skill-Biased Technical Change is one of the most prominent explanations for the rise in wage inequality in the United States over the last decades. However, the explanation is challenged for several reasons. In this paper, I propose an alternative type of technical change, where new technologies...

In this paper I illustrate how the diffusion across firms of a skill-neutral technology leads to a skill-biased impact on the economy. The model identifies (i) differences in inter-firm mobility between skill groups, (ii) productivity dispersion across firms within industries, and (iii)...

Motivated by the canonical (random) on-the-job search model, I measure a person’s ability to sort into preferred jobs by the risk ratio of job-to-job transitions to transitions into unemployment. I show that this measure possesses various desirable features. Making use of the Survey of Income...