Skill-biased technological change, training, and the college wage premium: A quantitative analysis

Thomas Palmer

No 72, CLEF Working Paper Series from Canadian Labour Economics Forum (CLEF), University of Waterloo

Abstract: This paper establishes that the rise in employer-provided training due to technological change has dampened the college wage premium. Using unique survey micro-data, I show that hightechnology firms provide more training overall, but the gap in training participation between high- and low-skill workers is smaller within these firms. To understand the aggregate implications of these patterns, I build a quantitative model of the labor market with endogenous technology and training investments. In a counterfactual exercise, I find that the increase in the college wage premium would be 63 percent greater if training costs remained constant between 1980 and the early 2000s.

Keywords: Training; Technological Change; College Wage Premium; Education; Technology (search for similar items in EconPapers)
JEL-codes: E24 I24 J24 J31 M53 O33 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-dge, nep-lma and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:clefwp:300865

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