Template-Type: ReDIF-Paper 1.0 Author-Name: Chinhui Juhn Author-X-Name-First: Chinhui Author-X-Name-Last: Juhn Author-Email: cjuhn@uh.edu Author-Workplace-Name: Department of Economics, University of Houston Author-Name: Aimee Chin Author-X-Name-First: Aimee Author-X-Name-Last: Chin Author-Workplace-Name: Department of Economics, University of Houston Author-Email: achin@mail.uh.edu Author-Name: Peter Thompson Author-X-Name-First: Peter Author-X-Name-Last: Thompson Author-Workplace-Name: Department of Economics, Florida International University Author-Email: peter.thompson2@fiu.edu Title: Technical Change and the Wage Structure During the Second Industrial Revolution: Evidence from the Merchant Marine, 1865-1912 Abstract: Using a large, individual-level wage data set, we examine the impact of a major technological innovation—the steam engine—on skill demand and the wage structure in the merchant shipping industry. We find that the technical change created a new demand for skilled workers, the engineers, while destroying demand for workers with skills relevant only to sail. It had a deskilling effect on production work—able-bodied seamen (essentially, artisans) were replaced by unskilled engine room operatives. On the other hand, mates and able-bodied seamen employed on steam earned a premium relative to their counterparts on sail. A wholesale switch from sail to steam would increase the 90/10 wage ratio by 40%, with most of the rise in inequality coming from the creation of the engineer occupation. Length: 49 pages Creation-Date: 2004-08 File-URL: http://www.uh.edu/econpapers/RePEc/hou/wpaper/2004-03.pdf File-Format: Application/pdf Number: 2004-03 Classification-JEL: I20, J24, J31 Handle: RePEc:hou:wpaper:2004-03