“…Finally, overarching these microeconomic dynamics, technology-biased innovation and investment have been identifi ed by many authors as a cause of declining labor shares of income (in other words, as a cause of divergence between labor productivity and wages) across industries and countries (Hogrefe;Kappler, 2012;Bentolila;Saint Paul, 1999). In this analysis, capital-augmenting technical progress, such as the widespread adoption of computers from the 1990s onwards, may generate factor biases between capital and labor, with the degree of bias determined by activityspecifi c elasticities of substitution between factors (Karabarbounis;Neiman, 2013;Findlay;Jones, 1999;Feenstra;Hanson, 1999).…”