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- W2188544971 abstract "It is widely documented that the college-high school wage dierential in the US and many European countries began to rise rapidly starting from the 1980s and the upward trend continued in the past few decades. The large increase in the college wage premium was accompanied by a large secular rise in the relative supply of college workers at the same time. The leading hypothesis explaining this phenomenon is the skill-biased technology change (SBTC). The SBTC argues that constant and exogenous arrival of new technologies that are more complementary to skilled workers causes labor demand for skilled workers to rise relative to that of unskilled workers (Katz and Murphy, 1992; Autor, Katz, and Kearney, 2008). Another set of papers suggests that the shift in the relative labor demand curve is a response to the shift in relative supply (Acemoglu, 1998; Beaudry and Green, 2003; Acemoglu, 2007). A common feature to these models is that, instead of imposing exogenous and stable shift in labor demand as in the SBTC literature, technology choice is endogenous (either in the form of adoption or invention). An inow of skilled workers increases return to using more skill-complementary technology, making rms more likely to upgrade their technology and the long-run relative labor demand curve potentially upward-sloping. While predictions from the endogenous technology change hypothesis are shown to be consistent with the empirical facts, few existing studies have produced convincing evidence on the causal impact of changes to the supply of skills on the demand for skills. One diculty" @default.
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- W2188544971 date "2014-01-01" @default.
- W2188544971 modified "2023-09-23" @default.
- W2188544971 title "How Does Labor Demand React to Changes in the Supply of Skills? Evidence from Schooling Reforms" @default.
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