Afonso, Óscar; Thompson, Maria - Faculdade de Economia, Universidade do Porto - 2009
We propose a new framework to analyse the wage premium behaviour. Building on Acemoglu and Zilibotti (2001), we introduce physical capital and two assumptions: (i) internal costly investment in both capital and R&D; (ii) complementarities between capital goods in production. We find that, for...