I fit a two-sector general equilibrium model to U.S. data in 1963-2005 in order to infer technological processes that affect the college premium. In skill intensive services factor augmenting technological change is slower for college graduates relative to less skilled workers. I find the...

Consider the following facts. In 1950, the richest countries attained an average of 8 years of schooling whereas the poorest countries 1.3 years, a large 6-fold difference. By 2005, the difference in schooling declined to 2-fold because schooling increased faster in poor than in rich countries....

This paper first establishes the empirical fact that over the last quarter of the 20th century, the average weekly hours worked increased for workers in the highest wage quintile while it decreased for the ones at the lowest. In 1976, a worker in the lowest quintile worked 2.8 hours more per...

This research develops a model that incorporates both parental altruism toward children and the allocation of time among human capital investment and production in market and nonmarket sector. By introducing these two production sectors, the model captures the interaction among fertility, human...

A substantial fraction of a worker's time at work goes to acquiring human capital. This paper explicitly considers on-the-job human capital accumulation from the perspective of time invested for acquiring skills and learning by doing in an RBC model and shows that the inability to account for...

Over the past several decades, married women's hours of market work increased significantly in the US. I argue that changes in behavior by married women with children account for much of this change. In particular, the pattern of married women's work hours has changed substantially over the...

We use a business cycle model to analyze the general equilibrium implications of a representative agent's decision to devote time to skill acquisition activities, which are modeled as boosting subsequent labor productivity by increasing the stock of human capital. We use aggregate data on...

An empirical consensus suggests that there are small employment effects of minimum wage increases. This paper argues that these are short-run elasticities. Long-run elasticities, which may differ from short-run elasticities, are policy relevant. This paper develops a dynamic industry equilibrium...

This paper examines entrepreneurship in order to analyze, first, the degree to which the opportunity to start or own a business affects the household's saving behavior and the implication of this behavior for the distribution of wealth and, second, the relationship between the extent of...