Wage risk and the skill premium
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F22%3A00568741" target="_blank" >RIV/67985998:_____/22:00568741 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/22:00559243
Result on the web
<a href="https://doi.org/10.1093/ej/ueac015" target="_blank" >https://doi.org/10.1093/ej/ueac015</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1093/ej/ueac015" target="_blank" >10.1093/ej/ueac015</a>
Alternative languages
Result language
angličtina
Original language name
Wage risk and the skill premium
Original language description
The skill premium has increased significantly in the United States in the last five decades. During the same period, individual wage risk has also increased. This paper proposes a mechanism through which a rise in wage risk increases the skill premium. Intuitively, a rise in uninsured wage risk increases precautionary savings, thereby boosting capital accumulation, which increases the skill premium due to capital-skill complementarity. Using a quantitative macroeconomic model, we find that the rise in wage risk observed between 1967 and 2010 increases the skill premium significantly. This finding is robust across a variety of model specifications.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA17-27676S" target="_blank" >GA17-27676S: Rising Economic Inequality: Reasons and Policies</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Economic Journal
ISSN
0013-0133
e-ISSN
1468-0297
Volume of the periodical
132
Issue of the periodical within the volume
646
Country of publishing house
GB - UNITED KINGDOM
Number of pages
24
Pages from-to
2207-2230
UT code for WoS article
000787430200001
EID of the result in the Scopus database
2-s2.0-85143176078