TY - RPRT AU - Chin, Aimee AU - Juhn, Chinhui AU - Thompson, Peter TI - Technical Change and the Wage Structure During the Second Industrial Revolution: Evidence from the Merchant Marine, 1865-1912 PY - 2004/Sep/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 1285 UR - https://www.iza.org/index.php/publications/dp1285 AB - Using a large, individual-level wage data set, we examine the impact of a major technological innovation – the steam engine – on skill demand and the wage structure in the merchant shipping industry. We find that the technical change created a new demand for skilled workers, the engineers, while destroying demand for workers with skills relevant only to sail. It had a deskilling effect on production work – able-bodied seamen (essentially, artisans) were replaced by unskilled engine room operatives. On the other hand, mates and able-bodied seamen employed on steam earned a premium relative to their counterparts on sail. A wholesale switch from sail to steam would increase the 90/10 wage ratio by 40%, with most of the rise in inequality coming from the creation of the engineer occupation. KW - wage inequality KW - skill premium KW - skill-biased technical change ER -