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New Technologies and the College Premium
This paper shows that the pace of technology creation is a key driver of wage inequality. It develops a model where college-educated workers learn how to use new technologies faster than others, and where this advantage dissipates over time as technologies become standardized and easier to use. In equilibrium, the college wage premium is determined by the interplay between the pace of technology creation and standardization. A heightened pace of technology creation causes a long-lasting increase in the college premium. We calibrate the model using novel text-based data on new technologies and ...