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Does unmeasured ability explain the wage premium associated with technological change?: Quantile regression analysis

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By using the quantile regressions of earnings equation, we find that the educational wage premium is higher in industries with rapid technological change than in industries with slower technological change at every decile in the distribution of wage residuals. The wage premium associated with the technological change is mostly explained by the returns to workers' unobserved heterogeneities, which are correlated with education, rather than the rents of high-tech industries.
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Document Type: Research Article

Affiliations: Department of Economics, Yonsei University, Seoul 120-749, Korea

Publication date: 2007-05-01

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