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To highlight the economic mechanisms, we devise a task-based direct technical change model that allows us to analyze the determinants of the threshold task, the relative output and prices between sectors, intra- and inter-sectoral wage differences, wage polarization and economic growth rates. We observe that an increase in the efficiency of skilled or unskilled workers as well as a decrease in the efficiency of medium-skilled workers as possible result of automation always increase wage polarization as well as economic growth rates. In a quantitative exercise we also assess the change in the weight of routine and non-routine sectors in the economy. In this context, governments should implement policies to support the professional transition of medium-skilled workers to non-routinazable tasks.<\/jats:p>","DOI":"10.1007\/s00712-023-00833-y","type":"journal-article","created":{"date-parts":[[2023,7,11]],"date-time":"2023-07-11T16:01:33Z","timestamp":1689091293000},"page":"93-119","update-policy":"https:\/\/doi.org\/10.1007\/springer_crossmark_policy","source":"Crossref","is-referenced-by-count":8,"title":["Technological knowledge and wages: from skill premium to wage polarization"],"prefix":"10.1007","volume":"140","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-9597-9850","authenticated-orcid":false,"given":"Oscar","family":"Afonso","sequence":"first","affiliation":[]},{"given":"Tiago","family":"Sequeira","sequence":"additional","affiliation":[]},{"given":"Derick","family":"Almeida","sequence":"additional","affiliation":[]}],"member":"297","published-online":{"date-parts":[[2023,7,11]]},"reference":[{"key":"833_CR1","first-page":"1043","volume-title":"Handbook of labor economics","author":"D Acemoglu","year":"2011","unstructured":"Acemoglu D, Autor D (2011) Skills, tasks and technologies: implications for employment and earnings. 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