What is Skill-biased Technological Change

The research on the digital divide usually analyzes the differences between those who have access to information technology and those who have not. This approach typically considers information technology a homogeneous set of technologies. In this chapter, we will break this assumption establishing different subsets of information technologies according to their impact on the task productivity and the firm’s demand for high skilled labour. This new focus reveals that depending on the information technology used by the firm to perform a given task, the demand for high skilled and low skilled workers may vary and consequently their wages and income, producing in some cases a new and till now unobserved digital divide