Government spending composition, technical change and wage inequality

Figure 1. Government spending composition and the skill premium: 1963-99

Source: BEA NIPA tables sec. 5 for government spending composition, and the skill premium is taken from
Krusell et al. (2000) and CPS (1999). Government spending composition is government investment in R&S
as a share of total public investment.

Figure 2. Private R&D spending and the skill premium

Source: R&D data are taken from NSF Science and Engineering indicators (2004).

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