Blundell, Richard, Green, David and Jin, Wenchao (2022) The U.K. as a technological follower: higher education expansion and the college wage premium. The Review Of Economic Studies, 89 (1). pp. 142-180. ISSN 1467-937X

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Abstract

The proportion of U.K. people with university degrees tripled between 1993 and 2015. However, over the same period the time trend in the college wage premium has been extraordinarily flat. We show that these patterns cannot be explained by composition changes. Instead, we present a model in which firms choose between centralized and decentralized organizational forms and demonstrate that it can explain the main patterns. We also show the model has implications that differentiate it from both the exogenous skill-biased technological change model and the endogenous invention model, and that U.K. data fit with those implications. The result is a consistent picture of the transformation of the U.K. labour market in the last two decades.

Item Type:	Article
Schools and Departments:	University of Sussex Business School > Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labour > HD4801 Labour. Work. Working class > HD4909 Wages
Depositing User:	Wenchao Jin
Date Deposited:	02 Sep 2022 13:24
Last Modified:	02 Sep 2022 13:30
URI:	http://sro.sussex.ac.uk/id/eprint/107671

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