Título:
|
Wage risk and the skill premium
|
Autor/a:
|
Slavík, Ctirad; Yazici, Hakki
|
Abstract:
|
The skill premium has increased significantly in the United States in the last five decades. During the same period, individual wage risk has also increased. This paper proposes a mechanism through which a rise in wage risk increases the skill premium. Intuitively, a rise in uninsured wage risk increases precautionary savings, thereby boosting capital accumulation, which increases the skill premium due to capital-skill complementarity. Using a quantitative macroeconomic model, we find that the rise in wage risk observed between 1967 and 2010 increases the skill premium significantly. This finding is robust across a variety of model specifications. |
Abstract:
|
The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396. |
Materia(s):
|
-Skill premium -Wage risk -Capital-skill complementarity -Precautionary savings |
Derechos:
|
open access
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original.
https://creativecommons.org/licenses/by/4.0/ |
Tipo de documento:
|
Working paper |
Editor:
|
|
Compartir:
|
|
Uri:
|
https://ddd.uab.cat/record/196781
|