Journal
INDUSTRIAL AND CORPORATE CHANGE
Volume 28, Issue 6, Pages 1673-1696Publisher
OXFORD UNIV PRESS
DOI: 10.1093/icc/dtz025
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The present paper empirically investigates the effects of structural change-change in labor productivity fueled by labor reallocation across industries-on relative demand for skilled workers, using the NBER-CES Manufacturing Industry Database for the period of 1958-2011. The measures unveil that the US manufacturing sectors had experienced dramatic structural change since the 1990s when labor was reallocated from high-productivity to low- productivity industries. Furthermore, we find the evidence that the growth-reducing structural change impinges positively on relative demand for skilled workers and is therefore another driving force of rising wage inequality, apart from high-tech capital investment and outsourcing activities, in the US manufacturing sectors.
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