This paper examines the relationship between skill-biased technological change (SBTC) and rising wage inequality in the U.S. labor market. SBTC, associated with the development of personal computers and related technologies, is often cited as the main explanation for the rise in wage inequality during the 1980s. However, the authors argue that SBTC fails to explain several key observations, including the stabilization of wage inequality in the 1990s, the closing of the gender wage gap, the stability of the racial wage gap, and the rise in education-related wage gaps for younger versus older workers. The authors conclude that SBTC is not a sufficient explanation for the changes in the wage structure over the past three decades. The paper presents a theoretical framework for analyzing SBTC, based on a CES production function that models the demand for high-skilled and low-skilled labor. It discusses two main hypotheses for how SBTC affects wage inequality: (1) relative demand has risen for groups more likely to use computers, and (2) relative demand has risen for more highly-paid workers. The authors then analyze changes in the structure of wages in the U.S. labor market over the past 20-30 years, highlighting shifts that are consistent with SBTC and those that pose problems or puzzles for the theory. The authors find that SBTC is not a unicausal explanation for the evolution of the U.S. wage structure in the 1980s and 1990s. They argue that while technological changes have had some effect on relative wages, the SBTC hypothesis alone is not particularly helpful in understanding the shifts in the structure of wages that have occurred in the U.S. labor market. The authors suggest that it is time to re-evaluate the case that SBTC offers a satisfactory explanation for the rise in U.S. wage inequality in the last quarter of the 20th century.This paper examines the relationship between skill-biased technological change (SBTC) and rising wage inequality in the U.S. labor market. SBTC, associated with the development of personal computers and related technologies, is often cited as the main explanation for the rise in wage inequality during the 1980s. However, the authors argue that SBTC fails to explain several key observations, including the stabilization of wage inequality in the 1990s, the closing of the gender wage gap, the stability of the racial wage gap, and the rise in education-related wage gaps for younger versus older workers. The authors conclude that SBTC is not a sufficient explanation for the changes in the wage structure over the past three decades. The paper presents a theoretical framework for analyzing SBTC, based on a CES production function that models the demand for high-skilled and low-skilled labor. It discusses two main hypotheses for how SBTC affects wage inequality: (1) relative demand has risen for groups more likely to use computers, and (2) relative demand has risen for more highly-paid workers. The authors then analyze changes in the structure of wages in the U.S. labor market over the past 20-30 years, highlighting shifts that are consistent with SBTC and those that pose problems or puzzles for the theory. The authors find that SBTC is not a unicausal explanation for the evolution of the U.S. wage structure in the 1980s and 1990s. They argue that while technological changes have had some effect on relative wages, the SBTC hypothesis alone is not particularly helpful in understanding the shifts in the structure of wages that have occurred in the U.S. labor market. The authors suggest that it is time to re-evaluate the case that SBTC offers a satisfactory explanation for the rise in U.S. wage inequality in the last quarter of the 20th century.