Wage risk and the skill premium
Slavík, Ctirad
Yazici, Hakki

Fecha: 2018
Resumen: The skill premium has increased significantly in the United States in the last five decades. During the same period, individual wage risk has also increased. This paper proposes a mechanism through which a rise in wage risk increases the skill premium. Intuitively, a rise in uninsured wage risk increases precautionary savings, thereby boosting capital accumulation, which increases the skill premium due to capital-skill complementarity. Using a quantitative macroeconomic model, we find that the rise in wage risk observed between 1967 and 2010 increases the skill premium significantly. This finding is robust across a variety of model specifications.
Resumen: The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
Nota: Número d'acord de subvenció EC/H2020/649396
Derechos: Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original. Creative Commons
Lengua: Anglès.
Colección: Barcelona Graduate School of Economics: ADEMU working paper series
Colección: ADEMU Working Paper Series ; 88
Documento: workingPaper
Materia: Skill premium ; Wage risk ; Capital-skill complementarity ; Precautionary savings

Adreça alternativa: https://hdl.handle.net/10230/34479


49 p, 538.4 KB

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 Registro creado el 2018-10-23, última modificación el 2018-11-10



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