Wage Inequality and Entrepreneurship

Federico De Francesco
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Federico De Francesco: University of California Los Angeles

No 959, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: increase the relative supply of skilled workers and thus decrease their relative price. I formalize this idea in an occupational choice model. A quantitative exercise suggests that the proposed mechanism can account for about one third of the observed cross country differences in the skill premium.

Date: 2010
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