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earnings convergence across source countries with time in the United States. Human-capital theory plausibly explains the … inverse relationship between initial earnings and earnings growth rates: the good fit between data and theory suggests that …
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This paper utilizes the self-employed to analyze the observed increase in the educational earnings premium in the 1980's. The paper compares the predictions of the signaling and human capital models in response to an exogenous demand shock such as a skill-biased technological change. Since the...
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the wages for skilled and unskilled workers, leading to involuntary unemployment of unskilled workers in equilibrium … by lower wage differentials as well as higher unemployment. Allowing for endogenous skill formation in both countries …
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