TY  - JOUR
AU  - Beaudry,Paul
AU  - Green,David
TI  - What is Driving US and Canadian Wages:  Exogenous Technical Change or   Endogenous Choice of Technique?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6853
PY  - 1998
Y2  - December 1998
UR  - http://www.nber.org/papers/w6853
L1  - http://www.nber.org/papers/w6853.pdf
N1  - Author contact info:
Paul Beaudry
Department of Economics
University of British Columbia
Vancouver, Canada
Tel: 604/822-8624
Fax: 604/822-5915
E-Mail: paulbe@interchange.ubc.ca

David Green
E-Mail: david.green@civil-society.org.uk
AB  - This paper proposes a new and unified explanation for the following trends observed over the last 25 years: (1) the increased returns to education, (2) the slow measured growth in TFP in an economy undergoing massive changes in its methods of production, and (3) the poor wage performance, relative to TFP growth, of both young high school and college educated workers. The explanation we propose downplays the role of exogenous skill-biased technological change and instead emphasizes how the endogenous choice of modes of organization, influenced by changes in factor supplies, can generate the above observations.  For example, we argue that increased education attainment, through its effect of the choice production techniques, may have been the major cause for the increased differential between more and less educated workers over the last quarter of a century.  The evidence we examine to test our hypothesis is based on US and Canadian data over the period 1971 - 95.  We pay particular attention to explaining the difference between our results and those associated with the skill-biased technical change hypothesis.
ER  -