Deidda, LG.; Paolini, D. - Centro Ricerche Nord Sud (CRENoS) - 2012
, also increases. Hence, increases in the wage skill premium induce an education race as skilled individuals try and invest … level of education. Hence, the behavior of the long run supply of skills with respect to an increase in the wage-skill … premium is sluggish. Such mechanism supports a supply side explanation –which complements the skill bias technological change …