We revisit the capital-skill complementarity hypothesis and examine whether and under what conditions this mechanism can explain the developments in wage inequality and labor share in the 1963–2016 period. Krusell, Ohanian, Rios-Rull, and Violante (2000) show that a model with capital-skill...

In 1985, when historians of economics had barely begun to examine the field of statistical economics (or econometrics), Carl F. Christ, once a Cowles Commission econometrician, noted in an historical survey that “one of the most famous relations ever estimated by least squares was in ‘A...