Today, Technology Isn’t Major Driver of Wage Inequality Part 3
Monday, December 2, 2013
Third and final Byte in our series: Economists Lawrence Mishel and Heidi Shierholz of the Economic Policy Institute (EPI), and economist John Schmitt of the Center for Economic and Policy Research (CEPR) discuss data showing that technology is not the primary driver of the increase in wage inequality since the late 1970s. The influential “skill-biased technological change” (SBTC) explanation claims that technology raises demand for educated workers, thus allowing them to command higher wages, and a more recent SBTC explanation focuses on computerization’s role in creating “job polarization.”
An expanded demand for low-wage service occupations is not a key driver of wage trends....