Jerzmanowski, Michal; Nabar, Malhar - Volkswirtschaftliche Fakultät, … - 2008
We argue that financial market development contributed to the rise in the skill premium and residual wage inequality in … the US since the 1980s. We present an endogenous growth model with imperfect credit markets and establish how improving … high school diploma fell by about 2.2%. Similarly, residual (or within-group) inequality increased. The 90-50 percentile …