Study On The Effect Of Skill-biased Technical Change In China

This paper builds a two-sector model of skill-biased technical change linked withendogenous labor supply and educational choice to analyze the process of biasedtechnical change. Basing on the model, we constructed the index of skill-biasedtechnical change and calculated the index in China using the micro data of CHNS.The numerical simulation is employed to study the effect of labor supply, educationalchoice and wage inequality on the continuous skill-biased technical change. Theanalysis found that, the index of skill-biased technical change in China increase at anaccelerating speed. The continuous skill-biased technical change will increase thegross product and the wage of skilled labor and unskilled labor, but it will alsoincrease the wage inequality. In particular, the increasing neutral technical progresscould weaken the inequality in wage induced by skill-biased technical change.