Teulings, Coen N.; van Rens, Thijs - 2021
When types of workers are imperfect substitutes, the Mincerian rate of return to human capital is negatively related to … the supply of human capital. We work out a simple model for the joint evolution of output and wage dispersion. We estimate … one year increase in the stock of human capital reduces the rate of return by about 2 percent. The combination of …