Skills, Computerization, and Earnings in the Postwar U.S. Economy

Abstract

Using both time-series and pooled cross-section, time-series data for 44 industries over the period 1947-1997 in the United States, no evidence is found to support the idea that the growth of skills or educational attainment had any statistically significant effect on growth of earnings. On the other hand, earnings growth is found to be positively related to overall productivity growth and equipment investment, while computerization and international trade both had a retardant effect on earnings.