Financial Development and Wage Inequality: Theory and Evidence from US States

Malhar Nabar and Michal Jerzmanowski
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Malhar Nabar: Wellesley College

No 890, 2007 Meeting Papers from Society for Economic Dynamics

Abstract: development is an independent source of the rise in the skill premium in the US since the 1980s, as well as a factor magnifying the effects of technological progress and trade. We provide evidence in support of the model's predictions.

Date: 2007
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