The Impact of Technological Change on Work and Wages

Abstract

This review begins with a discussion of how technology affects wage structures. The literature reviewed is divided into two segments—studies of the impact of technological change on wages (and growing inequality), productivity, and employment and studies of the interrelationship of technology, human resource systems, and labor productivity. We conclude with suggestions for future research topics. Overall, we find that technological change accounts for only part of the changing wage structure in the United States, whereas changes in institutional forces that affect the creation of industry rents and the distribution of rents are also an important factor.

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