  Although wage inequality has evolved in advanced countries over recent
decades, it remains unknown the extent to which changes in wage inequality and
their differences across countries are attributable to specific capital and
labor quantities. We examine this issue by estimating a sector-level production
function extended to allow for capital-skill complementarity and factor-biased
technological change using cross-country and cross-industry panel data. Our
results indicate that most of the changes in the skill premium are attributable
to the relative quantities of ICT equipment, skilled labor, and unskilled labor
in the goods and service sectors of the majority of advanced countries.
