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Analyzing skilled and unskilled labor efficiencies in the US

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  • Unel, Bulent

Abstract

In this paper, I analyze the time paths of the efficiencies of skilled and unskilled labor in a production framework where skilled and unskilled labor are imperfect substitutes. Their implications for economic growth and wage inequality in the US between 1950 and 2005 present two main findings. First, although skilled labor efficiency has a strong upward trend, I find no evidence of acceleration in its growth rate to support the common view that there has been an acceleration in the new skilled-biased technologies. Second, beginning around 1970, there has been a decline in the absolute level of the efficiency of unskilled labor, implying that the decline has played a significant role in the overall productivity slowdown and the substantial widening in the US wage structure.

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  • Unel, Bulent, 2010. "Analyzing skilled and unskilled labor efficiencies in the US," Journal of Macroeconomics, Elsevier, vol. 32(4), pages 957-967, December.
    • Handle: RePEc:eee:jmacro:v:32:y:2010:i:4:p:957-967
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    Cited by:

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    4. Dinopoulos, Elias & Syropoulos, Constantinos & Xu, Bin & Yotov, Yoto V., 2011. "Intraindustry trade and the skill premium: Theory and evidence," Journal of International Economics, Elsevier, vol. 84(1), pages 15-25, May.
    5. Casey B. Mulligan & Trevor S. Gallen, 2013. "Wedges, Wages, and Productivity under the Affordable Care Act," NBER Working Papers 19771, National Bureau of Economic Research, Inc.
    6. Schulte, Patrick, 2021. "Skill Bias magnified: Identifying the role of international technology diffusion," Journal of International Economics, Elsevier, vol. 129(C).
    7. Trevor S. Gallen & Casey B. Mulligan, 2018. "Wedges, Labor Market Behavior, and Health Insurance Coverage under the Affordable Care Act," National Tax Journal, National Tax Association;National Tax Journal, vol. 71(1), pages 75-120, March.
    8. Shulei Cheng & Wei Fan & Jianlin Wang, 2022. "Investigating the humanitarian labor efficiency of China: a factor-specific model," Annals of Operations Research, Springer, vol. 319(1), pages 439-461, December.
    9. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
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    11. Akira Yakita, 2021. "Is tightening immigration policy good for workers in the receiving economy?," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 975-991, October.

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