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samarkandy

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https://www.researchgate.net/publication/265678186_SBTC_SBIT_and_the_supply_of_human_capital


Abstract
This paper aims to survey the theoretical and empirical literature on increasing wage and employment differentials in favour of high skill workers and against low skill workers. Much literature stresses the role of demand shifts against low skill workers, caused by skill biased technical change (SBTC) and by sector biased international trade (SBIT). Moreover, demand shifts with characteristics similar to SBIT are sometimes attributed to changes in the composition of demand for products of different skill intensity. It is shown that while SBTC tends to reduce both the employment and wages of low skill workers, SBIT tends to affect negatively (positively) wages (employment). Demand factors do not seem to be the only factor explaining increasing wage differentials. Bringing supply side factors to the fore actually helps explaining the evolution over time of wage and employment differentials by skill, but leaves unexplained cross country differences, especially those between the high wage dispersion of the US labour markets contrasted with the high EU unemployment level. Different labour market institutions could explain such differences. Much research is on-going on the employment effects of flexible versus rigid labour market institutions. On an empirical ground we show that the now traditional approach of disentangling within and between differences in wage changes is under revision, as it suffers from various shortcomings. Moreover, it ignores the supply side. Panel data analysis and different types of wage equations are the framework to consider contemporaneous demand and supply side factors, without neglecting the role of differences in labour market institutions.




I came across this article when I googled 'SBTC' and 'Mexico', which I did after I had read that someone said that the ransom demand of $118,000 was approximately the equivalent of $1m Mexican pesos in 1996 and that the 'foreign faction' mentioned in the ransom note might have been meant to be a Mexican foreign faction for which a million pesos would be a lot of money. Apparently the 'someone' was Lou Smit and he mentioned it to John Douglas who wrote it in his book.

The idea that when the writer of the ransom note signed it S.B.T.C he might have had 'skill biased technical change' in mind appeals to me, especially when one considers that the note also mentions John's business.  



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samarkandy

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Following are some interesting replies to my OP received on the above topic at Reddit in 2019

https://www.reddit.com/r/JonBenet/comments/ejdfew/sbtc/

S.B.T.C.

skill biased technical change

https://www.researchgate.net/publication/265678186_SBTC_SBIT_and_the_supply_of_human_capital

SBTC, SBIT and the supply of human capital



post from Heatherk79

I've actually come across skilled biased technological change when searching "SBTC" in the past. I had the same question as you; was it a "thing" in the 90s? I was able to find articles written in the mid 90s which either addressed skilled biased technological change, or referred to research done on the concept prior to 1996.

I thought it was interesting since it relates to technology (computers) and so did JR's business. Obviously, intruder theorists will have a different take on the way in which it might relate to JR's business/the ransom note.

another post from Heatherk79

"This isn't really a theory I ever latched onto. It was just something I came across and wondered whether "skilled biased technological change" was a relatively new concept, or if it had been around at the time of the murder. I didn't actually bother to bookmark any of the articles I had found.

A quick search, however, led to this article which states:

The concept of SBTC, first developed by Griliches (1969) and Welch (1970), is based on the hypothesis of capital-skill complementarity, and suggests that employers’ increased demand for skilled workers is driven by new technologies that are penetrating into modernized industries, and which only workers with a higher level of skill can operate (Machin, 2003).

The first to explore SBTC empirically were Berman, Bound and Griliches (1994) who provided evidence for the existence of strong correlations between within industry skill upgrading and increased investment in both computer technology and R&D in the U.S. manufacturing sector between 1979 and 1989."


post from searchinGirl

Thanks for the link to this article. I'm not sure that when you sent it before I actually had the chance to read it. But it helped me put SBTC as it relates to this OP into perspective. Perhaps there is a connection to the general business culture in Boulder in 1996:

Reaching the billion-dollar mark has come relatively quickly for Access, which was formed in 1989 from the merger of three companies: CAD Distributors Inc. of Boulder; CAD Sources Inc. of Piscataway, N.J.; and Advanced Products Group of Roswell, Ga.

In 1990, Access posted $59 million in sales and had 120 employees. While revenues have grown about 1,600 percent, employment has grown about 358 percent, to 550 employees. About 380 employees are in Boulder, 100 in Europe, 20 in Mexico City, 12 in Canada and some at warehouses in California and Pennsylvania.

Access Graphics, a wholly owned subsidiary of Bethesda, Md.-based Lockheed Martin Corp., gets about 60 percent of its revenues from selling hardware and software from Sun Microsystems Inc. of Mountain View, Calif.

Sun, known for its Unix workstations and Java software, is planning an office campus of more than 1 million square feet with more than 3,500 employees at Interlocken business park in Broomfield. Access is one of two distributors for Sun in the United States that is authorized to sell to resellers, which get customer support from Access in selling to end-users.

 

 The paper on Skills Biased Technological Change appears to me to be a quantification and explanation for a predictive economic model of a cultural shift that occurs when highly skilled technical workers come into demand for emerging new technologies. And lower-skilled workers don't have the skill to compete.

 

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samarkandy

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