Policy Implications

Possible policy implications which could alleviate the problems between skilled and unskilled labor.

1. Policy makers should encourage employers to give on-the-job traiing to unskilled employees. This would allow them to develope "non-cognitive" skills.

2. Advocate for education and off-the job training.

3. Policy makers should focus more on general education and training, even at the expense of more technical traing. general education is important because even shop-floor workers now need more general skills.

Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2003. "The Skill Bias Effect of Technological and Organisational Change: Evidence and Policy Implications," IZA Discussion Papers 934, Institute for the Study of Labor (IZA).