This paper examines the relationship between skill-biased technological change (SBTC) and rising wage inequality in the U.S. labor market during the 1980s and 1990s. The authors review evidence supporting the SBTC hypothesis, which attributes the rise in wage inequality to technological advancements, particularly the development of personal computers and related information technologies. They discuss the implications of SBTC for economy-wide trends in wage inequality and the evolution of wage differentials between various groups. However, they find that the SBTC hypothesis faces several puzzles and problems, such as the stabilization of wage inequality in the 1990s despite continued technological advancements, the closing of the gender gap, the stability of the racial wage gap, and the dramatic rise in education-related wage gaps for younger versus older workers. The authors conclude that the SBTC hypothesis is not sufficient to explain the complex shifts in the structure of wages over the past three decades and suggest that it may be time to re-evaluate the role of SBTC in understanding wage inequality.This paper examines the relationship between skill-biased technological change (SBTC) and rising wage inequality in the U.S. labor market during the 1980s and 1990s. The authors review evidence supporting the SBTC hypothesis, which attributes the rise in wage inequality to technological advancements, particularly the development of personal computers and related information technologies. They discuss the implications of SBTC for economy-wide trends in wage inequality and the evolution of wage differentials between various groups. However, they find that the SBTC hypothesis faces several puzzles and problems, such as the stabilization of wage inequality in the 1990s despite continued technological advancements, the closing of the gender gap, the stability of the racial wage gap, and the dramatic rise in education-related wage gaps for younger versus older workers. The authors conclude that the SBTC hypothesis is not sufficient to explain the complex shifts in the structure of wages over the past three decades and suggest that it may be time to re-evaluate the role of SBTC in understanding wage inequality.