Reinterpreting the Skill-biased Technological Change Hypothesis
A Study of Technology, Firm Size, and Wage Inequality in the California Hospital Industry
Download eBook for Free
| Format | File Size | Notes |
|---|---|---|
| PDF file | 0.2 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
This study examines data from the 1983-1993 California hospital industry to test whether observed patterns of wage inequality growth can be explained by the skill-biased technological change hypothesis. The study finds little evidence of a direct link between technological inputs and skill premia, particularly when growth in firm size is taken into account. The findings challenge the notion that technological change is skill biased and suggest that economies of scale permit hospitals to compete for clientele on the basis of labor force quality. Since technological expenditures often promote consolidation, a reassessment of the relationship between wages and technology is suggested.
The research described in this report was performed under the auspices of RAND Labor and Population.
This report is part of the RAND Corporation Working paper series. RAND working papers are intended to share researchers' latest findings and to solicit informal peer review. They have been approved for circulation by RAND but may not have been formally edited or peer reviewed.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.