The research paper discusses how technical changes affect the labor market, wage and income
distribution, and whether wage structure changes starting in the 1970s occurred due to these
technical changes. Many argue that changes in technology favor and complement skilled workers and substitute unskilled workers’ tasks. Empirical trends in the US show an increase in the
supply of skills starting in the 1940s without indications that the college premium decreased.
One exception are the 1970s where it fell due to a very high supply of skills. Starting in the
1970s, the overall and residual wage inequality in the US rose.