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Workforce composition and earnings inequality

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  • Mark E. Schweitzer
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    Abstract

    A presentation of a model that incorporates many factors simultaneously -- including education, experience, and industry choice -- to explain the growing disparity in Americans earnings. Its main finding is that the shifting composition of the U.S. workforce is a significant and direct determinant of the widening earnings gap.

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    File URL: http://www.clevelandfed.org/research/review/1997/97-q2-schweitzer.pdf
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    Bibliographic Info

    Article provided by Federal Reserve Bank of Cleveland in its journal Economic Review.

    Volume (Year): (1997)
    Issue (Month): Q II ()
    Pages: 13-24

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    Handle: RePEc:fip:fedcer:y:1997:i:qii:p:13-24

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    Related research

    Keywords: Income distribution ; Labor supply ; Education;

    References

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    1. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
    2. Smith, James P & Welch, Finis, 1979. "Inequality: Race Differences in the Distribution of Earnings," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(2), pages 515-26, June.
    3. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
    4. Creedy, John, 1977. "The Principle of Transfers and the Variance of Logarithms," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 39(2), pages 153-58, May.
    5. Chinhui Juhn & Kevin M. Murphy, 1996. "Wage Inequality and Family Labor Supply," NBER Working Papers 5459, National Bureau of Economic Research, Inc.
    6. Heckman, James & Scheinkman, Jose, 1987. "The Importance of Bundling in a Gorman-Lancaster Model of Earnings," Review of Economic Studies, Wiley Blackwell, vol. 54(2), pages 243-55, April.
    7. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
    8. Randall W. Eberts, 1989. "Accounting for the recent divergence in regional wage differentials," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 14-26.
    9. Richard B. Freeman, 1991. "How Much Has De-Unionisation Contributed to the Rise in Male Earnings Inequality?," NBER Working Papers 3826, National Bureau of Economic Research, Inc.
    10. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    11. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
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    Citations

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    Cited by:
    1. Erica L. Groshen & Mark E. Schweitzer, 1999. "Firms' wage adjustments: a break from the past?," Working Paper 9908, Federal Reserve Bank of Cleveland.

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