Abstract :
At thebusinesscyclefrequency,energypricesandtheskillpremiumdisplayastrong,
negativecorrelation.Thisfactisrobusttodifferentde-trendingprocedures.Identifying
exogenousshockstooilpricesusingtheHoover–Perez[1994.Posthocergopropteronce
more: anevaluationof‘Doesmonetarypolicymatter?’inthespiritofJamesTobin.
Journal ofMonetaryEcononmics34,47–73]dates,showsthattheskillpremiumfallsin
response tosuchashock.Theestimationoftheparametersofanaggregatetechnology
that uses,amongotherinputs,energyandheterogeneousskills,demonstratesthat
capital–skillandcapital–energycomplementarityareresponsibleforthiscorrelation.As
energy pricesrise,theuseofcapitaldecreasesandthedemandforunskilled
labor—relativetoskilledlabor—increases, loweringtheskillpremium
