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Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000

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  • Pedro Carneiro
  • Sokbae Lee

Abstract

This paper presents new evidence that increases in college enrollment lead to a decline in the average quality of college graduates between 1960 and 2000, resulting in a decrease of 6 percentage points in the college premium. A standard demand and supply framework can qualitatively account for the trend in the college and age premia over this period, but substantial quantitative adjustments are needed to account for changes in quality. (JEL I23, J24, J31)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 101 (2011)
Issue (Month): 6 (October)
Pages: 2309-49

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Handle: RePEc:aea:aecrev:v:101:y:2011:i:6:p:2309-49

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References

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  3. Olivetti, Claudia & Petrongolo, Barbara, 2006. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5506, C.E.P.R. Discussion Papers.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000
    by maximorossi in NEP-LTV blog on 2010-11-23 17:10:57
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Cited by:
  1. Lindley, Joanne & Machin, Stephen, 2011. "Rising Wage Inequality and Postgraduate Education," IZA Discussion Papers 5981, Institute for the Study of Labor (IZA).
  2. Pedro Carneiro & Sokbae 'Simon' Lee, 2009. "Estimating distributions of potential outcomes using local instrumental variables with an application to changes in college enrollment and wage inequality," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP01/09, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. Gregory Kurtzon, 2012. "Ability Composition Effects on the Education Premium," Working Papers, U.S. Bureau of Labor Statistics 456, U.S. Bureau of Labor Statistics.
  4. MORIKAWA Masayuki, 2013. "Postgraduate Education, Labor Participation, and Wages: An empirical analysis using micro data from Japan," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13065, Research Institute of Economy, Trade and Industry (RIETI).
  5. Nora Lustig & Luis F. Lopez-Calva & Eduardo Ortiz-Juarez, 2013. "Deconstructing the Decline in Inequality in Latin America," Working Papers, Tulane University, Department of Economics 1314, Tulane University, Department of Economics.
  6. Antonczyk, Dirk & DeLeire, Thomas & Fitzenberger, Bernd, 2010. "Polarization and rising wage inequality: comparing the U.S. and Germany," ZEW Discussion Papers 10-015, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Fang Yang & John Bailey Jones, . "Skill-Biased Technical Change and the Cost of Higher Education," Departmental Working Papers, Department of Economics, Louisiana State University 2014-09, Department of Economics, Louisiana State University.
  8. Elitas, Zeynep & Ercan, Hakan & Tumen, Semih, 2014. "Reassessing the Trends in the Relative Supply of College-Equivalent Workers in the U.S.: A Selection-Correction Approach," MPRA Paper 55396, University Library of Munich, Germany.
  9. Bratti, Massimiliano & Leombruni, Roberto, 2009. "Local Human Capital Externalities and Wages at the Firm Level: The Case of Italian Manufacturing," IZA Discussion Papers 4613, Institute for the Study of Labor (IZA).
  10. Verdugo, Gregory, 2014. "The great compression of the French wage structure, 1969–2008," Labour Economics, Elsevier, vol. 28(C), pages 131-144.
  11. Patrizia Ordine & Giuseppe Rose, 2014. "Too Many Graduates? A Theory Of (Efficient) Educational Mismatch And Evidence From A Quasi-Natural Experiment," Working Papers 201409, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  12. Bonfatti, Roberto & Ghatak, Maitreesh, 2013. "Trade and the allocation of talent with capital market imperfections," Journal of International Economics, Elsevier, vol. 89(1), pages 187-201.
  13. Aitor Lacuesta & Sergio Puente & Ernesto Villanueva, 2011. "The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989-2009," Banco de Espa�a Working Papers 1208, Banco de Espa�a.
  14. Lindley, Joanne, 2012. "The gender dimension of technical change and the role of task inputs," Labour Economics, Elsevier, vol. 19(4), pages 516-526.
  15. MORIKAWA Masayuki, 2012. "Postgraduate Education and Human Capital Productivity in Japan," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12009, Research Institute of Economy, Trade and Industry (RIETI).
  16. DEIDDA, Luca G. & PAOLINI , Dimitri & ,, 2013. "Wage premia, education race, and supply of educated workers," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2013062, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  17. Oppedisano, Veruska, 2014. "Higher education expansion and unskilled labour market outcomes," Economics of Education Review, Elsevier, Elsevier, vol. 40(C), pages 205-220.

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