Computers and the Demand for Skilled Labour: Industry and Establishment-Level Panel Evidence for the United Kingdom

Working Paper: CEPR ID: DP1907

Authors: Jonathan Haskel; Viva Heden

Abstract: We use two UK panel data sets to investigate skill-upgrading in the United Kingdom and how it has been affected by computerization. Census data reveals that most aggregate skill-upgrading is explained by within-firm rises in skill composition. Such upgrading is significantly related to computerization, a relation that is robust to different worker and computer types, endogeneity, human capital upgrading and other technology measures.

Keywords: computers; wage inequality; skill-biased technological change

JEL Codes: J31


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
computerization (L86)skill upgrading (J24)
computerization (L86)demand for skilled labor (J24)
computerization (L86)demand for unskilled labor (F66)
skill upgrading (J24)demand for skilled labor (J24)
computerization (L86)displacement of unskilled labor (F66)

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