Spatial skill premium along the process of structural transformation
Increasing demand for skilled workers induced by the skill-biased structural change, together with the increasing supply of skilled worker driven by educational reform exert an ambiguous impact on the skill premium, the relative price levels, and the resulting labor distribution in China. These b...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/66458 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Increasing demand for skilled workers induced by the skill-biased structural change,
together with the increasing supply of skilled worker driven by educational reform exert
an ambiguous impact on the skill premium, the relative price levels, and the resulting
labor distribution in China. These bring up the questions: How will the changes in skilled
worker demand and supply together affect the wage inequality and the social welfare over
time? We develop a tractable general equilibrium framework to quantitatively measure
and predict the magnitude of these impacts over the period 2005 to 2024. We find that the
simultaneous increase in both skilled worker demand and supply lead to a 38% increase
in the skill premium, but 19% decrease in the social welfare. |
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