The Skill Premium in Times of Rapid Technological Change

Tarek Alexander Hassan, Aakash Kalyani and Pascual Restrepo
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Tarek Alexander Hassan: Boston University
Aakash Kalyani: Federal Reserve Bank of St. Louis
Pascual Restrepo: Yale University

No 2505, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: This paper shows that the pace of technology creation is a key driver of the skill premium. It develops a model in which skilled workers have a comparative advantage in learning new technologies. As technologies age, they become standardized and accessible to other workers.

Pages: 60 pages
Date: 2026-03-01
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