Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures
Abstract
This paper investigates the shift in demand away from unskilled and toward skilled labor in U. S. manufacturing over the 1980s. Production labor-saving technological change is the chief explanation for this shift. That conclusion is based on three facts: (1) the shift is due mostly to increased use of skilled workers within the 450 industries in U. S. manufacturing rather than to a reallocation of employment between industries, as would be implied by a shift in product demand due to trade or to a defense buildup; (2) trade- and defense-demand are associated with only small employment reallocation effects; (3) increased use of nonproduction workers is strongly correlated with investment in computers and in R&D.
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Income distribution becomes dependent on changes in the skill composition of workers and the skill-biased nature of technological progress.
“Therefore, the income distribution becomes dependent on the changes in the skill composition of workers and skill-biased nature of technological progress (see, for instance, Berman et al., 1994;Autor et al., 1998;Piva and Vivarelli, 2004;Acemoglu and Autor, 2011).”
From Financialization and the Labor Share of Income (2019) · cites this paper as Berman et al., 1994
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Implications of Skill-Biased Technological Change: International EvidencePreprint
Berman, E., Bound, J., & Machin, S. J. (1998) · SSRN Electronic Journal · doi:10.2139/ssrn.89488 · Cited by 326 · see citing works
Self-citationOffshore production and skill upgrading by Japanese manufacturing firms
Head, K. C., & Ries, J. (2002) · Journal of International Economics · doi:10.1016/s0022-1996(01)00161-1 · Cited by 325 · see citing works
“Berman et al. (1994) (hereafter BBG) provide a discussion of this approach.”
Postsecondary Education and Increasing Wage Inequality
Lemieux, T. (2006) · American Economic Review · doi:10.1257/000282806777211667 · Cited by 318 · see citing works
Pianta, M. (2009) · Oxford University Press eBooks · doi:10.1093/oxfordhb/9780199286805.003.0021 · Cited by 324 · see citing works
Global Production Sharing and Rising Inequality: A Survey of Trade and Wages
Feenstra, R. C., & Hanson, G. (2001) · National Bureau of Economic Research · doi:10.3386/w8372 · Cited by 313 · see citing works
Berndt, E. R., & Paul, C. J. M. (1995) · Journal of Econometrics · doi:10.1016/0304-4076(94)01596-r · Cited by 311 · see citing works
Battisti, G., & Stoneman, P. L. (2009) · British Journal of Management · doi:10.1111/j.1467-8551.2009.00629.x · Cited by 310 · see citing works
The Gender Pay Gap: Have Women Gone as Far as They Can?
Blau, F. D., & Kahn, L. M. (2007) · Academy of Management Perspectives · doi:10.5465/amp.2007.24286161 · Cited by 554 · see citing works
The skill bias effect of technological and organisational change: Evidence and policy implications
Piva, M., Santarelli, E., & Vivarelli, M. (2005) · Research Policy · doi:10.1016/j.respol.2004.11.005 · Cited by 303 · see citing works
Evidence on the Employer Size-Wage Premium from Worker-Establishment Matched Data
Troske, K. R. (1999) · The Review of Economics and Statistics · doi:10.1162/003465399557950 · Cited by 296 · see citing works
“…While I would prefer to use a stock measure as opposed to a flow measure, previous research has shown that computer investment is related to both the level and the change in the skill of workers at both the plant and industry level (Berman et al., 1994; Autor et al., 1997; Doms et al., 1997).”
Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment
Feliciano, Z. M. (2001) · Industrial and Labor Relations Review · doi:10.1177/001979390105500106 · Cited by 294 · see citing works
Production transfer within multinational enterprises and American wages
Slaughter, M. J. (2000) · Journal of International Economics · doi:10.1016/s0022-1996(98)00081-6 · Cited by 280 · see citing works
“The BEA data start in 1977, about when wage inequality within US 2Looking at just the manufacturing sector, Berman et al. (1994) and Lawrence and Slaughter (1993) find that even though the relative wage of more-skilled workers has been rising, within most industries firms have been employing…”
Does European Unemployment Prop Up American Wages? National Labor Markets and Global Trade
Davis, D. R. (1998) · American Economic Review · Cited by 278 · see citing works
Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco
Currie, J., & Harrison, A. (1997) · Journal of Labor Economics · doi:10.1086/209876 · Cited by 278 · see citing works
O’Mahony, M., & van Ark, B. (2003) · Cited by 277 · see citing works
Schumpeterian Growth Theory and the Dynamics of Income Inequality
Aghion, P. (2002) · Econometrica · doi:10.1111/1468-0262.00312 · Cited by 261 · see citing works
Card, D., Kramarz, F., & Lemieux, T. (1996) · National Bureau of Economic Research · doi:10.3386/w5487 · Cited by 266 · see citing works
- Authors
- Berman, E., Bound, J., & Griliches, Z.
- Affiliations
- Boston University (US)
- National Bureau of Economic Research (US)
- ORCID
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1994-05-01
- Volume
- 109
- Issue
- 2
- Pages
- 367-397
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2078001550
- Cited by
- 1,870
- References
- 28
- Citations by year
- 2026: 22 · 2025: 23 · 2024: 25 · 2023: 33 · 2022: 41 · 2021: 45 · 2020: 46 · 2019: 50 · 2018: 38 · 2017: 63 · 2016: 43 · 2015: 73 · 2014: 63 · 2013: 75 · 2012: 55
- FWCI
- 93.64
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- National Science Foundation
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Keywords
- skilled labor demand, manufacturing employment, labor reallocation, defense spending, IT investment, R&D investment
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