Human-capital investment and the wage gap
According to empirical studies, the relation between the relative wage of skilled workers and their relative supply is U-shaped. This finding is explained by the effect of technological change on the incentives for humancapital investments made by heterogeneous individuals.
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- Oded Galor & Omer Moav, 2000.
"Ability-Biased Technological Transition, Wage Inequality, and Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 115(2), pages 469-497.
- Oded Galor & Omer Moav, 1998. "Ability Biased Technological Transition, Wage Inequality, and Economic Growth," Working Papers 98-14, Brown University, Department of Economics.