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This essay discusses the effect of technical change on wage inequality. I argue that the behavior of wages and returns to schooling indicates that technical change has been skill-biased during the past sixty years. Furthermore, the recent increase in inequality is most likely due to an...
Persistent link: https://www.econbiz.de/10013126042
supply and demand for skills by assuming two distinct skill groups that perform two different and imperfectly substitutable … complementing either high or low skill workers, can generate skill biased demand shifts. In this paper, we argue that despite its …
Persistent link: https://www.econbiz.de/10013116038
firm survey from the 1840s, we shed light on the mechanism: upper-tail knowledge raised productivity in innovative …
Persistent link: https://www.econbiz.de/10013052500
We construct a model of international trade and multinational production (MP) to examine the impact of globalization on the skill premium in skill-abundant and skill-scarce countries. The key mechanisms in our framework arise from the interaction between three elements: cross-country differences...
Persistent link: https://www.econbiz.de/10013137021
raises the demand facing highly competitive skill-intensive firms. In our model, only the lowest-cost firms participate in … the global economy exactly along the lines of Melitz (2003). In addition to differing in their productivity, firms differ … both greater trade volumes and an increase in the relative demand for skill, as the lowest-cost/most-skilled firms expand …
Persistent link: https://www.econbiz.de/10013118253
investigation into the relationship between a good's factor intensity in production and its income elasticity of demand in … and income elasticity of demand for several types of preferences, with and without accounting for trade costs and … composition of trade. Furthermore, an equal rise in productivity in all sectors in all countries leads to a rising skill premium …
Persistent link: https://www.econbiz.de/10013105464
This paper quantifies the roles of increases in the demand for skill-intensive output, the efficient scale of service … progress. The rising scale of services, the rising demand for skill-intensive output, and skill-biased technical change all …
Persistent link: https://www.econbiz.de/10013076916
unskilled-labor-biased. Increasing basic knowledge causes a growth takeoff, an income-led demand for fewer educated children …
Persistent link: https://www.econbiz.de/10012758155
This paper provides a comprehensive survey of seven aspects of rising inequality that are usually discussed separately: changes in labor's share of income; inequality at the bottom of the income distribution, including labor mobility; skill-biased technical change; inequality among high incomes;...
Persistent link: https://www.econbiz.de/10012759328
The existing literature on skill-biased technical change has not considered how the technological endowment itself plays a role in the returns to skill. This paper constructs a simple model of skill biased technical change which highlights the role that resource endowments play in the returns to...
Persistent link: https://www.econbiz.de/10012759703