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What are the causes of rising wage inequality in the United States?

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  • John Bound
  • George Johnson

Abstract

During the last 15 years--especially in the 1980s--wage inequality rose in the United States. It appears that this can be explained by a secular shift in production functions favoring workers with intellectual rather than manual skills, together with slower growth in the supply of skilled labor than in the previous decade.

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Bibliographic Info

Article provided by Federal Reserve Bank of New York in its journal Economic Policy Review.

Volume (Year): (1995)
Issue (Month): Jan ()
Pages: 9-17

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Handle: RePEc:fip:fednep:y:1995:i:jan:p:9-17:n:v.1.no.1

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Related research

Keywords: Education ; Labor supply ; Wages ; Income distribution;

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Citations

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Cited by:
  1. David A. Brauer, 1995. "Using regional variation to explain widening earnings differentials by educational attainment," Research Paper 9521, Federal Reserve Bank of New York.
  2. David R. Howell & Ellen Houston & William Milberg, 1999. "Demand Shifts and Earnings Inequality: Wage and Hours Growth by Occupation in the U.S., 1970-97," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 1999-02, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
  3. Pietro F. Peretto & John J. Seater, 2010. "Factor-Eliminating Technical Change," Working Papers 10-21, Duke University, Department of Economics.
  4. Jang Ping Thia, 2008. "Evolution of locations, specialisation and factor returns with two distinct waves of globalisation," LSE Research Online Documents on Economics 19567, London School of Economics and Political Science, LSE Library.
  5. Joseph A. Ritter, 1996. "Opening Pandora's box: the measurement of average wages," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 15-21.
  6. Glazer, Amihai & Ranjan, Priya, 2003. "Preference heterogeneity, wage inequality, and trade," Journal of International Economics, Elsevier, vol. 60(2), pages 455-469, August.
  7. Gonzalez, Arturo & Hilmer, Michael J., 2006. "The role of 2-year colleges in the improving situation of Hispanic postsecondary education," Economics of Education Review, Elsevier, vol. 25(3), pages 249-257, June.
  8. Pietro Peretto & John J. Seater, 2006. "Augmentation or Elimination?," DEGIT Conference Papers c011_060, DEGIT, Dynamics, Economic Growth, and International Trade.
  9. Michael T. Kiley, 1997. "The supply of skilled labor and skill-based technological progress," Finance and Economics Discussion Series 1997-45, Board of Governors of the Federal Reserve System (U.S.).
  10. Jang Ping Thia, 2008. "Evolution of Locations, Specialisation and Factor Returns with Two Distinct Waves of Globalisation," CEP Discussion Papers dp0875, Centre for Economic Performance, LSE.
  11. Malveaux, Julianne, 1999. "Women of color in the labor market," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 663-678.
  12. Arindam Banik & Pradip K. Bhaumik, 2005. "Supporting the poor but skilled artisans by making assets available to them: an empirical investigation in rural India," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(1), pages 45-66.
  13. Sturgill, Brad, 2012. "The relationship between factor shares and economic development," Journal of Macroeconomics, Elsevier, vol. 34(4), pages 1044-1062.

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