This assignment provides a comprehensive analysis of Daron Acemoglu's work on technical change, inequality, and the labor market, focusing on the impacts of technological advancements on wage structures and the skill premium. It examines empirical trends, including the increasing wage gap between skilled and unskilled workers, and explores the theory of skill premia using various production functions to understand the substitutability between high-skilled and low-skilled labor. The assignment further investigates the relationship between the supply of skilled workers and the skill premium, the role of technical change, and the concept of capital-skill complementarity. Additionally, it reviews Goldin and Katz's "The Race between Education and Technology," comparing developments in the college wage premium and the relative supply of college skills, and analyzing the elasticity of substitution between college and non-college workers. The U-shaped curve representing job polarization and the shifts in occupational skills are also discussed.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
