Since the early-1990s the UK experienced an unprecedented increase in university graduates. The proportion of people with a university degree by age 30 more than doubled from 16% for born in 1965-69 to 33% for those born ten years later. At the same time the age profile of the graduate premium...

In this paper, we study the effect of skill-biased technological change on unemployment when benefits are linked to the evolution of average income and when this is not the case. In the former case, an increase in the productivity of skilled workers and hence their wage leads to an increase in...