Individuals choose to invest in general skills through education or technology-specific skills by working on the job. Technological progress, which occurs randomly across sectors, depreciates technology-specific skills - thus increasing the return to education and generating a precautionary...

In this paper, I analyze the time paths of the efficiencies of skilled and unskilled labor in aproduction framework where skilled and unskilled labor are imperfect substitutes. Theirimplications for economic growth and wage inequality in the US between 1950 and 2005present two main findings....

This paper offers an explanation for the evolution of wage inequality within and between industries and education groups over the past several decades. The model is based on the disproportionate depreciation of technology-specific skills versus general skills due to technological progress, which...