Skill-biased technological change influences the demand for high-skilled workers in what way?

Skill-biased technological change refers to improvements in technology that enhance the productivity of high-skilled workers while having a lesser effect on the productivity of low-skilled workers. When new technologies are developed, they often require workers who possess advanced skills to effectively utilize and implement these innovations. This leads to a higher demand for workers who are educated and trained in these specific areas, as they can contribute to and leverage these advancements more effectively.

As companies adopt new technologies that require skilled labor, the market increasingly seeks individuals with the relevant qualifications and experience. Consequently, the labor demand shifts towards high-skilled workers, making them more competitive in the job market and resulting in higher wages and better employment opportunities for this group. This trend means that skill-biased technological change plays a crucial role in increasing the demand for high-skilled workers, as these individuals are essential for navigating and implementing new technological tools and processes in the workplace.