The Role of Technology in Determining Skilled Employment

Over the past twenty years, there has been a shift toward employment of skilled workers in Australia, as well as in many other industrialised economies.

A staff research paper by Patrick Laplagne, Peter Marshall and Susan Stone on The Role of Technology in Determining Skilled Employment: An Economywide Approach compares the role of technological change with that of trade in explaining the increased demand for skilled workers.

The paper shows technology has played the dominant role in changing employment patterns in Australia. This finding is consistent across industries, including those having experienced increased import competition. Rising capital intensity of production has also promoted the employment of more highly skilled workers.