Working Papers

 "Technology Usage and Life-cycle Earnings", Draft

Abstract: This paper investigates how technology usage affects growth in earnings and in earnings inequality over the life-cycle. I first document technology usage patterns empirically and investigate their relationship with earnings. Then, I develop a life-cycle model with a college decision, technology choices, human capital investments, and incomplete markets to quantify the impact of technology. Counterfactual experiments suggest that technology usage accounts for 15% (30%) of the growth in mean earnings (life-cycle inequality). Furthermore, I evaluate the role of technology usage on non-linear taxation policies, showing that progressive taxes have larger distortionary effects on earnings growth with endogenous technology choice.

 "Life-cycle Skill Premiums across Cohorts", Draft

Abstract: I document and investigate life-cycle profiles of skill premiums across cohorts. My empirical analysis shows that younger cohorts have steeper growth in the skill premium before age 40 but flatter growth after 40. I use a human capital investment model to account for the cross-cohort variation in skill premium profiles. The results indicate that the flattened growth after age 40 is caused by the drop in human capital (of high-skill workers) near the end of the life cycle. Besides, the magnitude of life-cycle growth in the skill premium is mainly driven by the relative skill price, which is the log ratio of wage rates between high-skill workers and low-skill workers.

"The Role of Information Technology Behind the Rise of Earnings Inequality", work in progress