The Evolution of U.S. Wages: Skill Prices versus Human Capital
The objective of this paper is to decompose movements in U.S. wages into movements of skill prices and labor qualities. The idea is to interpret the age-wage profiles of various birth cohorts observed in CPS data through the lens of human capital theory. Theory predicts that age-efficiency profiles should be concave (absent large skill price changes) and vary systematically with cohort education. I develop a model of school choice and on-the-job training and calibrate it to post-war U.S. wage data. The model measures the initial endowments (at age 17) and age-human capital profiles of each birth cohort as well as the school-specific skill prices for each year.
|Date of creation:||2012|
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