Population growth and the wage skill premium

• Type: Article in International Scientific Journal
• Date: 2018

Authors

Neves, PC (Author) Other; Óscar Afonso (Author) FEP; Sequeira, TN (Author) Other

Journal

Title: Economic Modelling

Vol. 68

Pages: 435-449

ISSN: 0264-9993

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 5 Citations

Other information

Authenticus ID: P-00N-JD0

DOI: 10.1016/j.econmod.2017.08.019

Abstract (EN): We develop a general equilibrium directed technical change model with growth of skilled and unskilled labour in order to analyse the effect of heterogeneous population growth on the skill premium. Heterogeneous population growth generates a non-monotonic and non-linear relationship between the skill premium and the demographic variables, which may help explain different conflicting patterns of the skill premium across history and amongst countries. In a quantitative exercise on the 138 economy for almost all the 20th century, we show that the model can replicate the observed data on skill premium. We extend the quantitative exercise to consider that the R & D productivity depends on population ageing and this improved the fit of the replication of the skill-premium pattern.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 15