WE’VE SEEN THAT SKILL-BIASED technical change has increased the relative demand for highly educated workers while reducing demand for less educated workers whose jobs frequently involve routine cognitive and manual tasks. In addition, capital-biased technological changes that encourage substitution of physical capital for labor have increased the profits earned by capital owners and reduced the share of income going to labor. In each case, historic amounts of wealth have been created. In each case, we also have seen increases in the earnings of the winners relative to the losers. But the
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