We propose a new method to analyse the changing skills structure of employment in countries based on the input-output structure of the world economy. Demand for jobs, characterized by skill type and industry of employment, is driven by changes in technology, trade and consumption. Using...

We argue that trade in intermediate inputs, or 'global production sharing,' is a potentially important explanation for the increase in the wage gap between skilled and unskilled workers in the U.S. and elsewhere. Using a simple model of heterogeneous activities within an industry, we show that...