Nick Bloom, Stanford University, Labor Topics, 2015 26 Skill Biased Technical Change (SBTC) Can extend the Solow model to skilled and unskilled labor L=[(A s L s ) σ + (A u L u ) σ ] 1/σ <1 SBTC in this setup would be the ratio A s /A u rising over time Can substitute into a production function & re-arrange in terms of wage premium.
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