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Does unmeasured ability explain the wage premium associated with technological change?: Quantile regression analysis

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  • Kang-Shik Choi
  • Jinook Jeong

Abstract

By using the quantile regressions of earnings equation, we find that the educational wage premium is higher in industries with rapid technological change than in industries with slower technological change at every decile in the distribution of wage residuals. The wage premium associated with the technological change is mostly explained by the returns to workers' unobserved heterogeneities, which are correlated with education, rather than the rents of high-tech industries.

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  • Kang-Shik Choi & Jinook Jeong, 2007. "Does unmeasured ability explain the wage premium associated with technological change?: Quantile regression analysis," Applied Economics, Taylor & Francis Journals, vol. 39(9), pages 1163-1171.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1163-1171
    DOI: 10.1080/00036840500486565
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    Cited by:

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    2. Carli Bezuidenhout & Marianne Matthee & Neil Rankin, 2021. "Exporting and the wage premium: The case of South African manufacturing firms," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2031-2051, November.
    3. Fu, Dahai & Wu, Yanrui, 2013. "Export wage premium in China's manufacturing sector: A firm level analysis," China Economic Review, Elsevier, vol. 26(C), pages 182-196.
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    6. Hansa Jain, 2018. "Technological Change, Skill Supply and Wage Distribution: Comparison of High-Technology and Low-Technology Industries in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 299-320, June.

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