Implications of the Capital-Embodiment Revolution for Directed R & D and Wage Inequality

@inproceedings{Hornstein2003ImplicationsOT,
  title={Implications of the Capital-Embodiment Revolution for Directed R & D and Wage Inequality},
  author={Andreas Hornstein and Per Krusell},
  year={2003}
}
W age inequality has increased dramatically in the United States since the late 1970s. In particular, we have witnessed growing wage differences between groups defined by observed skills such as education or experience. For example, the college premium—that is, the percentage difference between the average wages of college-educated and noncollege-educated workers—increased by a factor of four. Since at the same time the relative supply of college-educated workers increased, we would have… CONTINUE READING