The rise in hourly earnings of college graduates within each race over the years have several economics connotations. Table 1.2 shows the increase in the supply of college graduates for both whites and non-whites. For the whites, the number of college graduates increased by 16.27% whereas that of the non-whites rose by 1.11%. In theory, the interaction of demand and supply of college graduates suggests a fall in the hourly wages of college graduates as supply increases. However, the results from the difference in estimates for college wage premium as discussed in the previous section showed otherwise. An explanation for this difference in the wage premium deviating from theory could stem from a rise in demand for college graduates driven largely by skilled biased technological change. An increase in the supply of college graduates reduce return to college as job competition increases. Thus, a rise in supply of college graduates from 1980 to 2014 is expected to reduce college return, unless the growth in supply is offset by a greater rise in the demand for college graduates. Most industries have adopted new technology as means of improving productivity and efficiency to match growing trends in their sectors of operation. The United States being a technologically advanced nation requires literate, technical and scientifically trained minds to develop ideas, manage complex organization and situations. The demand for skilled labor (college graduates) increases in the market following the improvement in technology in most sectors of the economy. This leads to a rise in the price (wages) of skilled labor. Thus, the rise in the supply of college graduate from 1980 to 2014 has been met by an increase in the demand for skill workers over the years as technology improves. Conclusion drawn from discussion above points to the fact that improvement in technology causes a rise in the college wage premium by 22% from 1980 to 2014 all else equal.