The relationship between changes in equipment technology and wages in the US construction industry

The US construction industry has witnessed a drop in real wages since 1970. The decline in real wages may be attributed to a combination of socio‐economic factors like migrant labourers, fringe benefits, safety procedures, union membership and worker skills. Another factor that may be impacting construction real wages is technological changes over the past couple of decades, including technological changes in construction equipment. This paper examines the relationship between changes in equipment technology and changes in construction wages with the help of five factors of equipment technology change: control, energy, ergonomics, functionality and information processing. Furthermore, data from the US Bureau of Labor Statistics' Current Population Survey is used to examine the effects of computer usage on wages among US hourly workers in construction. The research findings show significant relations exist between changes in equipment control, functionality and information processing with wages among non‐supervisory workers. Another finding indicated that although non‐supervisory construction workers who use computers at work earn higher hourly wages, there was no added wage benefit after controlling for the effects of experience, education and age.

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