With capital‐skill complementarity, the secular decline in the price of capital equipment due to equipment‐specific technological progress (ESTP) keeps pushing up the demand for skilled relative to unskilled labor and raising the skill premium. This paper quantitatively characterizes the...

Economists and policymakers in many developed countries regard digitalization and robotic automation as drivers of increased productivity and economic growth. However, these innovations increase the wage gap (skill premium) between unskilled and information technology (IT)-skilled workers. This...

China has made impressive strides in education in recent decades, even though the accumulation of human capital has lagged behind that of physical capital. Going forward, access to and quality of education will be key to sustain economic convergence with the most advanced economies and to offset...

A new social interaction system and a new outlook on the world are proposed. As a result, the social model evolves, requiring major changes. One aspect is data. A society's progress depends on information, which is a key fund and strategic reserve. Our culture is labelled as information-driven...

This chapter provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across...

This volume was prepared by Sebastian Benz while he was working at the Ifo Institute. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes five self-contained chapters. All chapters discuss different...