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The wage premium puzzle and the quality of human capital

Marquis, Milton H.; Trehan, Bharat; Tantivong, Wuttipan - 2011

The wage premium for high-skilled workers in the United States, measured as the ratio of the 90th-to-10th percentiles from the wage distribution, increased by 20 percent from the 1970s to the late 1980s. A large literature has emerged to explain this phenomenon. A leading explanation is that...