%0 Report %A Lindner, Attila %A Muraközy, Balázs %A Reizer, Balázs %A Schreiner, Ragnhild Camilla %T Firm-Level Technological Change and Skill Demand %D 2026 %8 2026 Apr %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 18516 %U https://www.iza.org/publications/dp18516 %X We quantify the contribution of firm-level technological change to skill demand and aggregate inequality in the presence of imperfect competition in the labor market. We show that skill-biased technological change increases both the firm-level skill ratio and the skill premium, while other shocks (e.g. firm-specific output demand shocks) cannot explain the increase in both outcomes. We exploit administrative data and a large survey measuring a broad class of firm-level technological changes from Hungary and Norway. We estimate that the aggregate college premium increases by 3.4% in Norway and by 4.9% in Hungary as a result of the skill bias in technological change. %K skill-biased technological change %K innovation %K skill premiums %K imperfect competition