For at least four decades, wages have grown more slowly for less-educated workers than workers with more education, although the gap is often exaggerated . But to be sure, income growth has not been as broad-based as it was in the post-war period. The key question is why?
Many neoclassical economists have laid the blame on technological change, arguing first that it was biased in favor of workers with more skills. If more workers would just go to college, all would be well.
But this “skill-biased technological change” (SBTC) argument never made sense because the growth in inequality among workers with […]
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