Tsai, Yi-Chan; Yang, C. C.; Yu, Hsin-Jung - In: Quantitative Economics 13 (2022) 3, pp. 1061-1099
With capital-skill complementarity, the secular decline in the price of capital equipment due to equipment-specific technological progress (ESTP) keeps pushing up the demand for skilled relative to unskilled labor and raising the skill premium. This paper quantitatively characterizes the...