Returns to Human Capital and Investment in New Technology

Author/Editor:

Rodolfo Luzio ; Steven V Dunaway ; Martin D Kaufman

Publication Date:

September 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper presents a simple framework that illustrates the link between skill-based wage differentiation and human capital acquisition given skill-biased technical progress. The analysis points to the economic costs resulting from labor market and income redistribution policies that prevent the skill premium from playing its role in fostering human capital accumulation and the adoption of new technologies. The study compares key economic indicators among Canada, France, Germany, the United Kingdom, and the United States. Differences in wage differen-tiation and investment in new technologies among these countries could be related to policies affecting labor markets; such practices may reflect social choices.

Series:

Working Paper No. 01/133

Subject:

English

Publication Date:

September 1, 2001

ISBN/ISSN:

9781451855494/1018-5941

Stock No:

WPIEA1332001

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

30

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