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Investment-specific technological change, skill accumulation, and wage inequality
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TL;DR: This paper presented a unified framework where the dynamics of both skill accumulation and wage inequality arise as an equilibrium outcome driven by measured investment-specific technological change, and examined the quantitative effects of some hypothetical tax-policy reforms on skill accumulation, wage inequality, and welfare.
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Abstract: Wage inequality between education groups in the United States has increased substantially since the early 1980s. The relative number of college-educated workers has also increased dramatically in the postwar period. This paper presents a unified framework where the dynamics of both skill accumulation and wage inequality arise as an equilibrium outcome driven by measured investment-specific technological change. Working through equipment-skill complementarity and endogenous skill accumulation, the model does well in capturing the steady growth in the relative quantity of skilled labor during the postwar period and the substantial rise in wage inequality after the early 1980s. Based on the calibrated model, we examine the quantitative effects of some hypothetical tax-policy reforms on skill accumulation, wage inequality, and welfare.
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Capital Controls and Income Inequality
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Introduction to Dynamic Macroeconomic General Equilibrium Models
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- 01 Sep 2015
TL;DR: In this paper, an introductory step-by-step course in Dynamic Stochastic General Equilibrium (DSGE) modelling is presented. But this course is intended for graduate students as an introductory course to DSGE modelling and for those economists who would like a hands-on approach to learning the basics of modern dynamic macroeconomic modelling.
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Lawrence F. Katz,David H. Autor +1 more
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Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality
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