115 A technology that makes skilled

115 A technology that makes skilled workers more productive decreases the wage per unit of skill but increasesrelative demand of skilled workers. This alone can drive the wage of skilled workers both up and down.In addition the response (and the speed of it) in the supply of skills will determine the movement in relativewages of the skilled and unskilled.116 See Atkinson (2008a) for an explanation of the textbook model and a thorough discussion of other aspectsthat need to be considered. On the importance of the dynamics, he noted, “Surprisingly, the dynamics ofwage differentials seem to have been little discussed in the literature of recent years. Yet, there is goodhistorical precedent. In 1959, Arrow and Capron published a paper on dynamic shortage and price rises,with an application to the then shortage of engineers and scientists—an application that seems of contemporaryrelevance” (Atkinson, 2008a, p. 10).