Contents -- I. INTRODUCTION -- II. LITERATURE REVIEW -- III. EMPIRICAL STRATEGY -- IV. RESULTS -- V. CONCLUSIONS -- Appendix I. Compensation Share -- Appendix II. A First Pass at Data: Bivariate Regression Results -- Appendix III. Correlation Matrix of Explanatory Variables -- Appendix IV. Multivariate Regression Results for Alternative Specifications -- Appendix V. Inequality -- Appendix VI. Multivariate regression results for alternative specifications -- Appendix VII. Capital-Augmenting Technological Progress -- References.