A new method is developed for allocating the changing use of skills among final demand growth, trade and technological change. In a multi-sector framework the skills content of intermediate and capital goods purchased is captured through input-output data. Technological change is measured through the changing use of labour, within the sector and in its purchased inputs. Three skill levels are identified from detailed occupations. Domestic demand growth (employment-creating) and technological change (labour-saving) both show marked skill-bias. The effects of trade are small. Most strikingly, the services sector generates high-skilled even more than low-skilled jobs, and new employment through supply chains.
Gregory, M., Zissimos, B., & Greenhalgh, C. (2001). Jobs for the skilled: How technology, trade, and domestic demand changed the structure of UK employment, 1979-90. Oxford Economic Papers, 53(1), 20-46. https://doi.org/10.1093/oep/53.1.20