Research On The Impact Of Skilled-biased Technological Change On Wage Gap

The widening of the wage gap in China has become an indisputable fact,and has aroused wide concern of scholars.For the wage gap,scholars put forward different theories to explain it.Based on the existing literature,this paper makes an empirical analysis of the wage gap in China's industrial sectors from the perspective of skilled biased technological change(SBTC),and to judge the bias of the technological change of the industry and it's impact on the wage gap.In this paper,we construct a CES production function,then derive the wage gap.And analysis the facts that affect the wage gap:technological change,the relative supply of workers and elasticity of substitution between skilled and unskilled workers.According to the definition of skilled biased technological change,analysis different factors how to influence skilled biased technological change.and further analysis of how skilled biased technological change,labor supply and elasticity of substitution effect wage gap.And then,this paper uses the panel data of Chinese industry in 1998-2007 to analyze the effect of skilled biased technological change on the wage gap.The empirical regression results show that the substitution elasticity between skilled workers and unskilled workers in the industrial sector is greater than 1,and there is an substitution relationship among different type workers.While technological change benefits skilled workers,technological change will widen the wage gap and increase wage inequality.And then the paper goes on the robust test.It is shown that the empirical results of this paper are consistent with the results of the total labor productivity instead of total factor productivity.On the whole,the technical change of Chinese industry in the 1998-2007 is biased towards the skilled workers,and the technological change has a positive effect on the wage gap.In the last part of this paper,there are conclusions and some policy suggestions are put forward.