Within and between sector changes in 'skills'
- The two sectors here are tradeables and non-tradeables (I classified whole industries... tradeables includes manufacturing, mining, etc and non-tradeables includes services, retail/wholesale, etc)
- High skill is defined as having greater than 12 years of schooling.
- For the early 70's versus the early 90's, decompose total changes in high skilled employment into within and between sector changes
- What does this decomposition tell you about the relative importance of globalization and technology in explaining increasing wage gaps between high and low skilled workers?
- What might be wrong with this story? How could within changes be due to globalization?
- Note: these data are from the PSID