Library Header Image
LSE Research Online LSE Library Services

Has ICT polarized skill demand? Evidence from eleven countries over 25 years

Michaels, Guy and Natraj, Ashwini and Van Reenen, John (2014) Has ICT polarized skill demand? Evidence from eleven countries over 25 years. Review of Economics and Statistics, 96 (1). pp. 60-77. ISSN 0034-6535

PDF - Published Version
Download (1MB) | Preview

Identification Number: 10.1162/REST_a_00366


We test the hypothesis that information and communication technologies (ICT) “polarize” labor markets, by increasing demand for the highly educated at the expense of the middle educated, with little effect on low-educated workers. Using data on the US, Japan, and nine European countries from 1980–2004, we find that industries with faster ICT growth shifted demand from middle educated workers to highly educated workers, consistent with ICT-based polarization. Trade openness is also associated with polarization, but this is not robust to controlling for R&D. Technologies account for up to a quarter of the growth in demand for highly educated workers.

Item Type: Article
Official URL:
Additional Information: © 2014 The President and Fellows of Harvard College and the Massachusetts Institute of Technology
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HE Transportation and Communications
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 15 Apr 2013 12:10
Last Modified: 02 Apr 2015 23:00
Funders: Economic and Social Research Council through the Centre for Economic Performance

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics