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A note on the college-premium framework
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Date
2014-4-1
Author
Elitaş, Zeynep
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This paper demonstrates that the estimates produced by the canonical collegepremium framework are nonnegligibly sensitive to the assumptions on the relative supply index, the key object in the analysis of the college premium. In particular, we argue that this framework does not offer a systematic way to account for the timeseries evolution of the efficiency units of labor supply. This fragility is a source of empirical non-robustness and has important implications for the analysis of wage inequality. We show how the main predictions of the standard model change upon relaxing the assumptions on the relative supply index
Subject Keywords
College premium equation
,
Wage inequality
,
Relative supply
,
Skill biased technological change (SBTC)
URI
http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/713
https://hdl.handle.net/11511/58317
Journal
METU Studies in Development
Collections
Department of Economics, Article
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Z. Elitaş, “A note on the college-premium framework,”
METU Studies in Development
, vol. 41, no. 1, pp. 43–52, 2014, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/713.