The secular shift in labor demand from unskilled to skilled labor is explained within a model that is solved numerically. There are three branches producing a basic good, a differentiated luxury good, and an intermediate service. Production is more skill-intensive in the luxury good and the...

The paper investigates the development of the skill-specific wage and employment structure for male full-time workers in Germany using a large micro data set for the time period 1975 to 1995. There are three main results of the analysis: First, employing two alternative measures for...

This paper constructs a picture of the labour market impact of trade liberalisation in Brazil. We examine the level and dispersion of wages, the skilled wage premium, and employment composition before and after trade liberalisation. After trade reform, there was a rise in the returns to college...

This paper presents a novel stylized fact and analyzes its contribution to the skill bias of technical change in U.S. manufacturing. The share of skilled labor embedded in intermediate inputs correlates strongly with the skill share employed in final production. This finding points toward an...

We develop a dynamic general-equilibrium framework in which growth is driven by skill-biased technology diffusion. The model incorporates leisure–labor decisions and human capital accumulation through education. We are able to reproduce the trends in income inequality and labor and skills...

Measures of social mobility provide an extra dimension for testing job search models. The present note tests the dynamic model in [Acemoglu, D., 1999. Changes in unemployment and wage inequality: an alternative theory and some evidence. American Economic Review 89, 1259-1278] with respect to...

This paper relates changes in the high-skilled / medium-skilled relative wage of full-time male wage-earners in France with changes in supply and skill-biased demand shifts, including skill-biased technical change (SBTC). Using annual employer-employee administrative data matched with Census...

This paper analyzes the effect of the recent technical change on the labor market and explains the observed differences in wage inequality among advanced countries. In particular, we focus on the difference between the wage inequality in the U.S. and continental Europe. By introducing human...

This paper introduces a tractable general equilibrium overlapping-generations model of human capital accumulation, and shows that it provides a consistent explanation of several key features of the evolution of the U.S. wage distribution from 1970 to 2000. The framework is based on the...

We develop a dynamic general-equilibrium model in which growth is driven by a skill-biased technology diffusion to reproduce trends in the income inequality, and the labor and skills supplies of the United States between 1969 and 1996. We incorporate education and leisure–labor decisions, and...