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After all, if there was so much technological change, why didn't it cause high average real wage increases, rather than the historically unprecedented stagnation of wages?
An answer to this question is that the effect of technological change on the average real wage rate depends on which kind of change occurs...
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Technological change that is neutral with respect to labor skills?that increases the efficiency of both skilled and unskilled labor by the same proportion?will result (after the adjustment of the aggregate capital stock has occurred) in increases in the average real wage equal to the rate at which efficiency increases...
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