Abstract
This paper presents a general equilibrium assignment model of workers to tasks with endogenous supply of skills. In the model, skills are endogenous and multidimensional, and two types of assignment occur: workers self‐select the type of skills to supply, and firms assign workers to tasks. The model shows that the impact of any skill‐biased technical change on wage inequality is tightly related to the distribution of skills in the population. When the supply of skills is endogenous, productivity effects can be overestimated or underestimated by wage data, and Johnson's () distinction between intensive and extensive technical change is impossible.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
