shifts by (observable) changes in the capital stock under a capital-skill complementarity technology. The results show that … stock of capital, the KORV model predicts that the skill-premium will remain between -5% and +5% of its 1996 level. …

This paper estimates the elasticity of substitution between capital and skill using variation across U.S. counties in … immigration-induced skill-mix changes between 1860 and 1930. We find that capital began as a q-complement for skilled and … parametric production function calibrated to our estimates imply the level of capital-skill complementarity after 1890 likely …