Labor Economics · intermediate
What moves on the Human Capital & the Mincer Equation diagram
Skill-biased technical change raises the return per year of schooling, steepening the earnings curve and strengthening the case for staying in education.
The earnings curve compounds with each year of schooling at the Mincer rate.
Skill-biased technology arrives: educated workers become far more productive with the new tools.
The earnings curve steepens, lifting up and away at higher schooling levels.
The break-even point comes earlier and the payoff to staying in school grows. Skill-biased technical change widens the graduate premium.
Examiners ask this as: graduate premium, tech boom, skills premium, returns to education rise, degree pays more.
Other scenarios on Human Capital & the Mincer Equation