ABSTRACT
Introduction One of the most prominent observations when analysing labour-market trends in the OECD countries over the past three decades is the fact that labour demand seems to favour more skilled workers, replaces tasks previously performed by unskilled workers, and intensifies inequality. Despite the marked increase in the supply of skilled workers, this shift has caused dramatic declines in unskilled employment rates throughout the OECD, which in some countries and periods has been accompanied by profound shifts in relative wages. The latter trend has been particularly strong in the United States and the United Kingdom and has attracted a lot of attention in the literature.
