The Wage Premium: A Puzzle
نویسنده
چکیده
In this paper, I present evidence that the premium for a college education is essentially uncorrelated with the business cycle and that the average hours worked by college graduates are less volatile than those worked by nongraduates. Business cycle theory is then shown to be inconsistent with these observations when endogenous utilization and skill acquisition are incorporated. Abstracting from these critical dimensions can account for the success of some papers in this issue.
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