Note: Extended Information (like abstracts, doi, url's etc.) can be found in quant-econ-extendedinfo.bib file in _static/

###

@book{Burns_2023,

title={Milton Friedman: The Last Conservative by Jennifer Burns},

author={Burns, Jennifer},

year={2023},

publisher={Farrar, Straus, and Giroux},

address = {New York}

}

@article{kuznets1939incomes,

title={Incomes from independent professional practice, 1929-1936},

author={Kuznets, Simon and Friedman, Milton},

journal={National Bureau of Economic Research Bulletin},

number = {72-23},

year={1939},

publisher={National Bureau of Economic Research}

}

@book{friedman1954incomes,

title={Income from Independent Professional Practice},

author={Friedman, Milton and Kuznets, Simon},

year={1945},

publisher={National Bureau of Economic Research},

address = {New York}

}

@book{smith2010wealth,

title = {The Wealth of Nations: An inquiry into the nature and causes of the Wealth of Nations},

author = {Smith, Adam},

This lecture presents a model of the college-high-school wage gap in which the

"time to build" a college graduate plays a key role.

```{note}

Milton Friedman used our model to study whether differences in the earnings of US dentists and doctors were justified by competitive labor markets or whether

they reflected entry barriers imposed by US governments working in conjunction with doctors' lobbies. Chapter 4 of Jennifer Burns {cite}`Burns_2023` presents an

interesting account of Milton Friedman's joint work with Simon Kuznets that eventually led to the publication of {cite}`kuznets1939incomes` and {cite}`friedman1954incomes`. To map Friedman's application to our model, think of our high school students as Friedman's dentists and our college graduates as Friedman's doctors.

```

The model is "incomplete" in the sense that it is just one "condition" in the form of a single equation that would be part of set equations comprising all "equilibrium conditions" of a more fully articulated model.

The condition featured in our model determines a college, high-school wage ratio that equalizes the present values of a high school worker and a college educated worker.