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Wage and Test Score Dispersion: Some International Evidence

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  • Christopher Ferrall
  • Kelly Bedard

Abstract

This paper includes fifty observations on wage distributions across eleven countries and two age cohorts defined by international mathematics tests given to thirteen-year-olds in 1962 and 1982. It is found that wage dispersion later in life is never greater than test score dispersion. In particular, Lorenz curves for a cohorts wages always lie above or on top of the cohorts test score Lorenz curve. Wage dispersion, as summarized by Gini coefficients, is significantly related to test score dispersion and union density in the country. A general fall in test score dispersion between 1962 and 1982 appears to be reflected in reduced wage dispersion. For three countries with available data (the U.S., the U. K., and Japan), evidence of skill-based changes in wage dispersion between the early 1970s and the late 1980s is found.

Suggested Citation

  • Christopher Ferrall & Kelly Bedard, 1997. "Wage and Test Score Dispersion: Some International Evidence," LIS Working papers 156, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:156
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    11. Hadia Majid & Rashid Memon, 2016. "Group inequality and regional development: Evidence from Pakistan," WIDER Working Paper Series wp-2016-151, World Institute for Development Economic Research (UNU-WIDER).
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    14. Peter Kuhn, 1998. "The Declining Labour Market Outcomes of the Less Skilled: Can Fiscal Policy Make a Difference?," Canadian Public Policy, University of Toronto Press, vol. 24(3), pages 370-377, September.
    15. Hadia Majid & Rashid Memon, 2016. "Group inequality and regional development: Evidence from Pakistan: Evidence from Pakistan," WIDER Working Paper Series 151, World Institute for Development Economic Research (UNU-WIDER).
    16. Zhang Qiwang & Wang Xiaorui, 2020. "Factors Influencing Employment Rate and Mobility of Science and Engineering and Economics and Management Graduates in Northeast China: An Examination," SAGE Open, , vol. 10(2), pages 21582440209, June.
    17. Lire Ersado & Jérémie Gignoux, 2014. "Inequality of Educational Opportunities in Egypt," Working Papers halshs-01064510, HAL.
    18. Adaiah Lilenstein, 2020. "Better measures of progress: Developing reliable estimates of educational access and quality in Francophone sub-Saharan Africa," Working Papers 13/2020, Stellenbosch University, Department of Economics.
    19. Checchi, Daniele & van de Werfhorst, Herman G., 2014. "Educational Policies and Income Inequality," IZA Discussion Papers 8222, Institute of Labor Economics (IZA).
    20. Lire Ersado & Jérémie Gignoux, 2017. "Egypt: inequality of opportunity in education," Middle East Development Journal, Taylor & Francis Journals, vol. 9(1), pages 22-54, January.
    21. Micklewright, John & Schnepf, Sylke V., 2006. "Inequality of Learning in Industrialised Countries," IZA Discussion Papers 2517, Institute of Labor Economics (IZA).
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    23. Checchi, Daniele & van de Werfhorst, Herman Gerbert, 2017. "Policies, Skills and Earnings: How Educational Inequality Affects Earnings Inequality," SocArXiv wn3h2, Center for Open Science.

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