NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Burhanettin Kuruscu

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers and Chapters

April 2010A Quantitative Analysis of the Evolution of the U.S. Wage Distribution, 1970-2000
with Fatih Guvenen
in NBER Macroeconomics Annual 2009, Volume 24, Daron Acemoglu, Kenneth Rogoff and Michael Woodford, editors
November 2009Taxation of Human Capital and Wage Inequality: A Cross-Country Analysis
with Fatih Guvenen, Serdar Ozkan: w15526
Wage inequality has been significantly higher in the United States than in continental European countries (CEU) since the 1970s. Moreover, this inequality gap has further widened during this period as the US has experienced a large increase in wage inequality, whereas the CEU has seen only modest changes. This paper studies the role of labor income tax policies for understanding these facts, focusing on male workers. We construct a life cycle model in which individuals decide each period whether to go to school, work, or stay non-employed. Individuals can accumulate skills either in school or while working. Wage inequality arises from differences across individuals in their ability to learn new skills as well as from idiosyncratic shocks. Progressive taxation compresses the (after-tax) wag...

Published: “Taxation of Human Capital and Wage Inequality: A Cross-Country Analysis” PAPER (with Burhanettin Kuruscu and Serdar Ozkan. Review of Economic Studies, 2014, Vol 81, pp. 818-850.

May 2007A Quantitative Analysis of the Evolution of the U.S. Wage Distribution: 1970-2000
with Fatih Guvenen: w13095
In this paper, we construct a parsimonious overlapping-generations model of human capital accumulation and study its quantitative implications for the evolution of the U.S. wage distribution from 1970 to 2000. A key feature of the model is that individuals differ in their ability to accumulate human capital, which is the main source of wage inequality in this model. We examine the response of this model to skill-biased technical change (SBTC), which is modeled as an increase in the trend growth rate of the price of human capital starting in the early 1970s. The model displays behavior that is consistent with several important trends observed in the US data, including the rise in overall wage inequality; the fall and subsequent rise in the college premium, as well as the fact that this beha...

Published: A Quantitative Analysis of the Evolution of the U.S. Wage Distribution, 1970-2000, Fatih Guvenen, Burhanettin Kuruscu. in NBER Macroeconomics Annual 2009, Volume 24, Acemoglu, Rogoff, and Woodford. 2010

Understanding the Evolution of the U.S. Wage Distribution: A Theoretical Analysis
with Fatih Guvenen: w13096
In this paper we present an analytically tractable overlapping generations model of human capital accumulation, and study its implications for the evolution of the U.S. wage distribution from 1970 to 2000. The key feature of the model, and the only source of heterogeneity, is that individuals differ in their ability to accumulate human capital. Therefore, wage inequality results only from differences in human capital accumulation. We examine the response of this model to skill-biased technical change (SBTC) theoretically. We show that in response to SBTC, the model generates behavior consistent with several features of the U.S. data including (i) a rise in overall wage inequality both in the short run and long run, (ii) an initial fall in the education premium followed by a strong recovery...

Published: Journal of the European Economic Association Volume 10, Issue 3, pages 482–517, June 2012 citation courtesy of

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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