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-biased technological progress and use cross-country panel data on inequality and GDP to test these ideas. A one-year increase in the level …
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The paper applies Ricardo's principle of comparative advantage to analyze the substitutability between types of labor. The problem of having to classify labor in a small number of types in e.g. standard CES models are avoided by applying a continuum of worker and job types, where better skilled...
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above the primary level is that the rich take up most education, so a subsidy would increase inequality. We show that there …, pre-tax income inequality decreases.We consider a Walrasian world with perfect capital and insurance markets. Hence, in …
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