Technological knowledge and wages: from skill premium to wage polarization

Abstract This paper studies the impact of automation shocks on technological-knowledge level, skill premium (or wage inequality), real prices, output, and economic growth. To highlight mechanisms, we devise a task-based direct technical change model that allows us to analyze determinants threshold task, relative output prices between sectors, intra- inter-sectoral differences, polarization growth rates. We observe an increase in efficiency skilled or unskilled workers as well decrease medium-skilled possible result always In quantitative exercise also assess weight routine non-routine sectors economy. this context, governments should implement policies support professional transition non-routinazable tasks.