- Title
- Skill Biased Structural Change
- Author(s)
- Francisco J. Buera Francisco Buera (Federal Reserve Bank of Chicago)
- Joseph P. Kaboski Joseph Kaboski (University of Notre Dame)
- Richard Rogerson Richard Rogerson (Princeton University)
- Abstract
- We document for a broad panel of advanced economies that increases in GDP per capita are associated with a shift in the composition of value added to sectors that are intensive in high-skill labor. It follows that further development in these economies leads to an increase in the relative demand for skilled labor. We develop a two-sector model of this process and use it to assess the contribution of this process of skill-biased structural change to the rise of the skill premium in the US, and a broad panel of advanced economies, over the period 1977 to 2005. We find that these compositional demands account for between 25 and 30% of the overall increase of the skill premium due to technical change.
- Creation Date
- 2015-05
- Section URL ID
- Paper Number
- 2015-6
- URL
- https://www.nber.org/system/files/working_papers/w21165/w21165.pdf
- File Function
- Jel
- E02, J20
- Keyword(s)
- Skill-based Structural Change, Labor
- Suppress
- false
- Series
- 13