Assortative Matching between workers and firms provides evidence of the complementarities or substitutes in production. The presence of complementarities is important for policies that aim to achieve the optimal allocation of resources, for example unemployment insurance. We argue that using...

In this dissertation I investigate the quantitative importance of embodied technical change as a source of the sharp rise in wage inequality occurred in the U.S. economy in the past 25 years. The essays in this thesis identify a pair of economic mechanisms that, given an acceleration in...