Full Citation

Title: What Accounts for the U.S.-Canada Education-Premium Difference?

Citation Type: Working Paper

Publication Year: 2009

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: This paper analyzes the differences in wage ratios of university graduates to less than universitygraduates, the education premium, in Canada and the United States from 1980 to 2000. Bothcountries experienced a similar increase in the fraction of university graduates and a similarincrease in skill biased technological change based on capital-embodied technological progress,but only the United States had a large increase in the education premium. Using a calibratedKrussel et al. (2000) model, the paper finds that the cross country difference is in equal proportiondue to the effective stock of capital equipment, the growth in skilled labor supply relative tounskilled labor and the relative abundance of skilled population in 1980. Growth in the workingage population is unimportant for the difference.

User Submitted?: No

Authors: Kryvtsov, Oleksiy; Ueberfeldt, Alexander

Series Title:

Publication Number: 2009-4

Institution: Bank of Canada

Pages:

Publisher Location: Ottawa, Ontario, Canada

Data Collections: IPUMS CPS

Topics: Education, Labor Force and Occupational Structure

Countries: