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Capital-skill complementarity and inequality: a macroeconomic analysis
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TL;DR: In this article, a version of the neoclassical growth model is used in which the key feature of aggregate technology is capital-skill complementarity: the elasticity of substitution is higher between capital equipment and unskilled workers than between skilled workers and capital equipment.
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Abstract: The notion of skilled-biased technological change is often held responsible for the recent behavior of the U.S. skill premium, or the ratio between the wages of skilled and unskilled labor. This paper develops a framework for understanding this notion in terms of observable variables and uses the framework to evaluate the fraction of the skill premium's variation that is caused by changes in observables. A version of the neoclassical growth model is used in which the key feature of aggregate technology is capital-skill complementarity: the elasticity of substitution is higher between capital equipment and unskilled labor than between capital equipment and skilled labor. With this feature, changes in observables can account for nearly all the variation in the skill premium over the last 30 years. This finding suggests that increased wage inequality results from economic growth driven by new, efficient technologies embodied in capital equipment.
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On the welfare impacts of an immigration amnesty
TL;DR: This article assess the effects of an immigration amnesty on agents' welfare by using a simple two-period overlapping generations model and show that in the presence of labor market discrimination, capital holders are harmed as the acquisition of legal status increases the wage bill that they pay.
Wage Inequality in Advanced Countries: Technology, Trade, Institutions and Social Norms
Giammario Impullitti
- 01 Jan 2005
TL;DR: In this article, the authors explore the recent literature on increasing wage inequality in some advanced countries in the last decades and focus on some new explanations that have not yet received sufficient attention in the literature.
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On the Structure of US Unemployment Disaggregated by Race, Ethnicity, and Gender
TL;DR: In this paper, empirical evidence regarding the structure of unemployment in the US disaggregated by race, ethnicity, and gender was presented. But, the analysis was limited to Hispanic males.
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•Dissertation
Trade, technology and relative wages : a computable general equilibrium analysis
Niven Winchester
- 01 Jan 2002
TL;DR: In this article, the authors evaluate the effects of trade and technology on UK wages using a computable general equilibrium framework and conclude that trade has had a significant adverse effect on the relative wage of a narrowly defined group of workers at the bottom end of the skill distribution.
Tourism demand and wages in a general equilibrium model of production
TL;DR: In this paper, a third factor of production, skilled labour or natural resources, is added to the second factor to delve more deeply into the potential income redistribution in general equilibrium due to rising foreign income.
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References
Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality
TL;DR: The authors suggests that the rapid increase in the proportion of college graduates in the United States labor force in 1970s may have been a causal factor in both the decline in the college premium during the 1970s and the large increase in inequality during the 1980s.
Theory ahead of business-cycle measurement
TL;DR: In this article, the authors reviewed recent developments in business cycle theory and found that the growth model, which was developed to account for the secular patterns in important economic aggregates, displays the business cycle phenomena once it incorporates the observed randomness in the rate of technological advance.
Pseudo maximum likelihood methods: theory
TL;DR: In this paper, a necessary and sufficient condition for the consistency if the pseudo maximum likelihood estimation of the first and second moments is given is given, and the existence of a lower bound for the asymptotic covariance matrix is shown.
•Book
Frontiers of business cycle research
Thomas F. Cooley
- 01 Jan 1995
TL;DR: In this paper, recursive methods for computing Equilibria of business cycle models are described. But they are not suitable for non-Walrasian economic models with imperfectly competitive product markets.
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•Posted Content
Changes in the Structure of Wages During the 1980'S: an Evaluation of Alternative Explanations
TL;DR: This article investigated several alternative explanations of these wage structure phenomena, including shifts in the structure of product demand, skilled-labor saving technological change, and changes in the incidence and level of rents received by lower skilled workers.
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