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Diverging patterns of education premium and school attendance in France and the US : a Walrasian view Author info | Abstract | Publisher info | Download info | Related research | Statistics David, de la Croix (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and UNIVERSITE CATHOLIQUE DE LOUVAIN ,Center for Operations Research and Econometrics (CORE) and FNRS Belgium)
FrŽdŽric Docquier (CADRE, Univ. de Lille 2 and IZA Bonn)
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We evaluate the effect of technology, demographics and policy on the differential evolution of the skill premium and on the rise in education investment in France and the USA. We use a computable general equilibrium model with overlapping generations of individuals, and endogenous education decisions. Human capital is made of two substitutable components, experience and education, both of them evolve endogenously over time. We calibrate this model on the post-war period and run counterfactual experiments to assess the effect of the different exogenous variables. French expansionary education policy boosted the supply of skills and kept the skill premium low. On the contrary, increasing education costs in the US contributed to increase wage differentials by reducing the supply of skills. The skill biased technical shock is key to understand rising school attendance and appears delayed in France.
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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number
2003010.
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Length: 35
Date of creation: 01 Jul 2003Date of revision:
Handle: RePEc:ctl:louvir:2003010Contact details of provider: Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium) Fax: +32 10473945 Email: Web page: http://www.uclouvain.be/econ More information through EDIRC
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Keywords: Human capital ; Education ; Skill premium ; Other versions of this item:
Paper de la Croix, David & Docquier, Frédéric, 2003.
"Diverging Patterns of Education Premium and School Attendance in France and the US: A Walrasian View ,"
IZA Discussion Papers
846, Institute for the Study of Labor (IZA).
[Downloadable!] DE LA CROIX, David & DOCQUIER, FrŽdŽric, 2003.
"Diverging patterns of education premium and school attendance in France and the US: a Walrasian view ,"
CORE Discussion Papers
2003058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!] Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
This paper has been announced in the following NEP Reports :
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