Changes in Returns to Task-Specific Skills and Gender Wage Gap

How did skilled-biased technological change affect wage inequality, particularly between men and women? To answer that question this paper constructs a task-based Roy model in which workers possess a bundle of basic skills, and occupations are characterized as a bundle of basic tasks. The model is structurally estimated using the task data from the Dictionary of Occupational Titles and the PSID. The main empirical finding is that men have more motor skills than women, but the returns to motor skills have dropped significantly, accounting for more than 40% of the narrowing gender wage gap.