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How Computers Reshaped Work-Skill Content of Technological Progress: An Empirical Study" Skill

The Skill Content of Recent Technological Change: An Empirical Exploration

Skill Content of Technological Progress: An Empirical Study" Skill Content of Recent Technological Change_ An Empirical This research report delves into how computerization is altering workplace task demands, thereby impacting the demand for highly skilled workers, particularly college graduates. The authors argue that computer technology has a significant advantage in handling routine, rule-driven tasks (both physical and cognitive), thus replacing less educated employees in these roles. Conversely, computers have limited effectiveness in handling complex, non-programmed tasks such as abstract logical reasoning, managerial decision-making, and legal debate, instead serving as a complementary productivity tool for highly skilled workers in these areas. Through an empirical analysis of U.S. labor force data from 1960 to 1998, the study reveals a fundamental shift in labor market structure. Data shows that as the cost of computer investment decreased, demand for non-routine cognitive tasks (analytical and interactive) increased dramatically across industries, while demand for routine work steadily declined. This evolution in task content occurred not only across industries but also more broadly within the same industry and even within the same job position. Ultimately, this transformation in task structure driven by technological progress explains much of the shift in the U.S. labor market towards a more educated workforce over the past few decades.