1 The Changing Nature of Labour Demand in the New Economy

In this paper I consider recent patterns of change in the labour market, placing particular emphasis on the way in which labour demand has shifted in favour of workers with more skills and education. The paper describes recent trends and critically evaluates the role played by skill-biased technological change. It also presents some recent evidence on the relation between relative demand shifts and computerization in the UK and US, showing that the links between simple headcount measures of computer use at work and shifts in skill demand were moderated in the 1990s as compared to the 1980s. JEL Classification: J0