Gangopadhyay, Kausik; Nishimura, Atsushi; Pal, Rupayan - Indira Gandhi Institute of Development Research (IGIDR) - 2012
We examine the empirical phenomenon of co-movement of skill premium and share prices by appealing to the techniques of cointegration. The US data (1984--2010) reveals that stock prices and skill premium are cointegrated indicating a long run relationship. We carry out a further investigation...