In this paper, we study the effects of advances in robotics, tangible
and intangible technologies, and trade openness and global value chain
participation on relative wages, relying upon the skill-biased technical
change and polarisation of the labour force frameworks. The empirical
analysis is carried out using a panel dataset comprising 18 mostly
advanced European economies and 6 industries, with annual observations
spanning the period 2008-2017. Our findings suggest that intangible
technologies - especially software & databases - significantly increase
the wage premium for high relative to lower-skilled labour.
Additionally, the tangible component of ICT primarily benefits
lower-skilled workers, whereas R&D and trade openness produce polarising
effects. The results are robust to the inclusion of sector-specific
labour market regulations variables in the models.
Keywords: Robots, Intangibles, Automation, ICT, Globalisation, Wage Differentials
JEL Classifications: C01, F16, F63, J31, O11, O33, O43