7. This question discusses the race between technology and education.

(a) (2 points) What is the skill premium?

(b) (2 points) What is skill-biased technical change?

(c) (3 points) With reference to skill-biased technical change, explain the race between technology and education.

(d) (2 points) Remember the technological change associated with the Industrial Revolution: explain whether that was skill-biased or not.

(e) (3 points) Suppose that the skill premium continues to grow. What would you expect to happen to individual investments in education? What about to the pattern of technological development (remember Allen!)