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Earnings within Education Groups and Overall Productivity Growth

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Author Info
John Laitner
Abstract

To offer a possible interpretation for recent empirical findings on earnings growth, this paper constructs a simple model with endogenous human capital investment, a distribution of natural abilities, and unbiased technological progress. The model predicts that in the long run, average earnings within any education group will grow more slowly than average wages overall. It also predicts that average earnings in high-education groups ultimately will rise relative to average earnings in low-education groups. In the model, these processes do not imply secular increases in the degree of inequality in the overall cross-sectional distribution of earnings.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 108 (2000)
Issue (Month): 4 (August)
Pages: 807-832
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Handle: RePEc:ucp:jpolec:v:108:y:2000:i:4:p:807-832

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  1. John Laitner & Dmitriy Stolyarov, 2005. "Technological Progress and Worker Productivity at Different Ages," Working Papers wp107, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
  2. Bas Straathof, 2006. "Schooling inequality and the rise of research," CPB Discussion Papers 74, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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This page was last updated on 2009-12-12.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.