Improvement in technology influence the labor market

Reference no: EM13686048

Use the classical model to answer this question. Presume technology improves and that workers are not the same (as opposed to what we discussed in class). Some are high skilled (like those with a college degree) and some are low skilled (like those with a high school degree). For the high skilled workers the new technology increases their marginal product of labor (because they know how to use the new technology) however for the low skilled workers the new technology does not affect their marginal product of labor. How does the improvement in technology influence the labor market?

Reference no: EM13686048

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