- AutorIn
- Michael Knoblach TU Dresden
- Titel
- Skill-Biased Technological Change, Endogenous Labor Supply, and the Skill Premium
- Zitierfähige Url:
- https://nbn-resolving.org/urn:nbn:de:bsz:14-qucosa2-344199
- Schriftenreihe
- CEPIE Working Paper
- Bandnummer
- 03/19
- Erstveröffentlichung
- 2019
- ISSN
- 2510-1196
- Abstract (EN)
- The evolution of the U.S. skill premium over the past century has been characterized by a U-shaped pattern. The previous literature has attributed this observation mainly to the existence of exogenous, unexpected technological shocks or changes in institutional factors. In contrast, this paper demonstrates that a U-shaped evolution of the skill premium can also be obtained using a simple two-sector growth model that comprises both variants of skill-biased technological change (SBTC): technological change (TC) that is favorable to high-skilled labor and capital-skill complementarity (CSC). Within this framework, we derive the conditions necessary to achieve a non-monotonic evolution of relative wages and analyze the dynamics of such a case. We show that in the short run for various parameter constellations an educational, a relative substitutability, and a factor intensity effect can induce a decrease in the skill premium despite moderate growth in the relative productivity of high-skilled labor. In the long run, as the difference in labor productivity increases, the skill premium also rises. To underpin our theoretical results, we conduct a comprehensive simulation study.
- Freie Schlagwörter (EN)
- Skill-Augmenting Technological Change, Capital-Skill Complementarity, Skill Premium, Neoclassical Growth Model
- Klassifikation (DDC)
- 330
- Klassifikation (RVK)
- QC 000
- Publizierende Institution
- Technische Universität Dresden, Dresden
- Version / Begutachtungsstatus
- Entwurf
- URN Qucosa
- urn:nbn:de:bsz:14-qucosa2-344199
- Veröffentlichungsdatum Qucosa
- 08.07.2019
- Dokumenttyp
- Forschungsbericht
- Sprache des Dokumentes
- Englisch
- Lizenz / Rechtehinweis