A Study On Skill-biased Technology Change And Skill Premium

In recent decades, wage gap phenomenon between skilled labor and unskilled labor has emerged in many countries. After some researches, many economists accord this problem to skill-biased technological change. Does there exist skill-biased technical change in China and whether skill-biased technical change affects the skill premium. On the basis of relevant theories, this paper carries on a study on skill-biased technical change and skill premium.This paper firstly states and summaries relevant theory about technologies and skill premium. Then it analyzes the current situation of Chinese technology progress and skill premium. Found that the demand for skilled labor has increased with the development of technical change, which indicates the technology change is skill-biased in China. Chinese labors generally receive low level of education, so the remuneration is relatively low. The wage growth rate of skilled labor is faster than that of unskilled labor, thus the skill premium phenomenon become more serious. This paper use CHNS data from 1989 to 2011 to test the effect of skill-biased technical change on skill premium. The empirical results show that skill-biased technological change promotes the skill premium. Moreover, international trade also has a positive impact skill premium and the relative supply of skilled labor restrain skill premium instead. Among these impact factors, technological progress has the greatest influence, which proves that our country has the skill-biased technological progress features. Finally, this paper proposes some suggestions such as adjust mode of technological progress, develop education and reduce the negative impact of international trade.