Skill-biased technical change has occupied empirical economists for much of the 90s. However, the empirical literature has not progressed much beyond observing a positive correlation between technology indicators and demand shifts. Two hypotheses on the root causes of skill biases in technical...

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)...

Employers repeatedly reevaluate their human capital investments when new technologies enter the market. Adopting new technologies can afford firms to achieve productivity gains (Schumpter 1942, Abernathy and Clark 1985, Anderson and Tushman 1990) while offering workers the opportunity to update...