ECONOMIC DEVELOPMENT ACROSS TIME AND SPACE

In this paper we apply the same framework totime-series data from the United States over theperiod 1963–1992. We find that throughout thisperiod the efficiencies of skilled labor and capitalhave risen. The efficiency of unskilled laborhas risen in tandem with those of the otherfactors in the early part of the sample, butsurprisingly, it has been falling since sometimein the 1970’s (the exact turning point dependssomewhat on some parametric assumptions). Inanalogy with the cross-country evidence, thesechanges are closely associated with changes inthe relative abundance of skilled labor and capital,which increased rather dramatically.[...]