Skill Wage Premium and Sectoral Labor Shift

• Main Authors: I-Hsin Chang, 張宜欣
• Other Authors: Ching-Sheng Mao
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/p4cu3k

碩士 === 國立臺灣大學 === 經濟學研究所 === 105 === The simultaneous increase in the high-skilled to low-skilled labor ratio and the skill wage premium is one of the most salient features of economic growth. Meanwhile, the technological improvement in advanced economies accompanies a sectoral shift from low to high skill intensive sector. In this paper, we develop a two-sector structural transformation model in which skill accumulation is endogenously determined. Our model predicts that the ``skill wage premium mechanism" encourages (hinders) the sectoral reallocation of the high- (low-) skilled workers. We also show that policies that aim to encourage skill accumulation may or may not improve welfare.