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How Can Skill-Biased Technological Change Account for Increased Earnings Inequality

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How can skill-biased technological change account for increased earnings inequality?


Definitions:

Useful Life

The estimated period over which a fixed asset is expected to be usable by an organization.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment valuation and project evaluation.

Annual Net Cash Inflows

The total amount of cash received minus cash expenses over a year.

Net Present Value

The discrepancy in the present valuation of incoming and outgoing cash flows within a certain timeframe.

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