Doepke, Matthias; Zilibotti, Fabrizio - UCLA Department of Economics - 2003
adopters is made up of Alabama, Delaware, Florida,
Georgia, Mississippi, New Hampshire, New Mexico, North Carolina, South …,as
y = f (x),
where x ≡ X
S
/X
U
is the skill ratio, and f is an increasing and concave function.
Labor markets are … competitive, and wages are equal to the marginal product of each
factor
w
S
= f
prime
(x),(2)
w
U
= f (x)− f
prime
(x) x.(3
The …