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U.S. Wage Inequality, Technological Change, and Decline in Union Power

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  • James S. Mosher

    (Ohio University)

Abstract

Wage inequality, including the college/high school education premium, has increased substantially in the United States. A key part of the most widely accepted explanation for this is that skill-biased technological change accelerated during this time. This article suggests that the impact of skill-biased technological change was closer to constant in the second half of the twentieth century. This leaves a large unexplained decrease in the college/high school education premium in the 1940s and a large unexplained increase in the 1980s. The current article provides evidence that the upsurge and decline in union power during those respective periods provide a good explanation for these unexplained wage inequality changes.

Suggested Citation

  • James S. Mosher, 2007. "U.S. Wage Inequality, Technological Change, and Decline in Union Power," Politics & Society, , vol. 35(2), pages 225-263, June.
    • Handle: RePEc:sae:polsoc:v:35:y:2007:i:2:p:225-263
    DOI: 10.1177/0032329207300394
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    References listed on IDEAS

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    1. Robert H. Topel, 1997. "Factor Proportions and Relative Wages: The Supply-Side Determinants of Wage Inequality," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 55-74, Spring.
    2. Michael J. Handel, 2000. "Trends in Direct Measures of Job Skill Requirements," Economics Working Paper Archive wp_301, Levy Economics Institute.
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