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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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“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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“Global economic competition, major innovations and technological advances in production techniques have weakened the demand for lower skilled workers across advanced industrial democracies (Berman et al., 1994; Wood, 1995).”
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“For example, Berman et al. (1994) and Pavcnik (2003) estimate an equation similar to (1) and interpret it has a “relative demand for skilled labor” (see also, Fajnzylber and Fernandes (2004) for an application in developing countries).”
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“…for film production,” this measure captures most but not all offshoring in motion picture services+ See U+S+ Department of Commerce 2001, 19+ 48+ See Berman, Bound, and Griliches 1994;Autor, Katz, and Krueger 1998; and Feenstra and Hanson 1999+ 49+ Changes in the employment share of computer…”
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“complementarities between capital inflow and skilled labor(1) (Robbins 1994; Berman et al. 1998; O’Connor and Lunati 1999). Meschi and Vivarelli (2009) explained that the increase in relative demand for highly skilled labor in LDCs is related to the fact that the import of machines and equipment allows for simultaneou…”
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“This phenomenon is particularly evident as the world’s population has increased, demanding more skilled labour for both developed and developing countries (Berman et al., 1994; Machin & Van Reenen, 1998).”
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Metadata
- 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
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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