Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111242
Authors: 
Rendall, Andrew
Rendall, Michelle
Year of Publication: 
2014
Series/Report no.: 
Working Paper Series, University of Zurich, Department of Economics 160
Abstract: 
SBTC is a powerful mechanism in explaining the increasing gap between educated and uneducated wages. However, SBTC cannot mimic the US within-group wage inequality. This paper provides an explanation for the observed intra-college group inequality by showing that the top decile earners' significant wage growth is underpinned by the link between ex ante ability, math-heavy college majors and highly quantitative occupations. We develop a general equilibrium model with multiple education outcomes, where wages are driven by individuals' ex ante abilities and acquired math skills. A large portion of within-group and general wage inequality is explained by math-biased technical change (MBTC).
Subjects: 
wage inequality
SBTC
college majors
occupations
mathematics abilities
JEL: 
E20
E24
E25
I20
I24
J24
J31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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