The Luddites were 19th century textile artisans attack and against machinery introduced. Because of new technology introduced, the skilled workers were replaced by unskilled workers, who were having low wages and less skilled workers. The skilled workers are aware of the new technology would lead to lose their job, and made them unemployed or earned less.

Currently, new technology would make skilled workers more attractive, because technologies are more biased on skilled peoples. And firms or companies are more likely to hire skilled workers, because they are much more productive and familiar to new technology, or well-known about new technology, or just can use new technology much efficacy than unskilled peoples. Because of this the demand of skilled people in nowadays are increasing, the wages are much higher than unskilled workers. Despite the demand differences between skilled and unskilled workers, the supply for skilled workers are more inelastic than unskilled, because it takes long time to training or educated. So because of high demand for skilled workers and more inelastic of supply, skilled workers nowadays are much more attractive and paid high wages. As result the high demand for skilled workers will stimulus government or society to training more skilled workers or more people would like to learn skills. Therefore increase the supply of skilled workers and employment level. Eventually, more skilled workers related to unskilled workers, the inequality or skill premium would reduce.

In low income countries, an improvement in technology would generate large relative wages for skilled workers. How large will depend on the substitutability between skilled workers and unskilled workers. For example, skilled workers in computer industries compare to food industries, the substitutability would lower, therefore, the wage inequality between this two