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Changes in the Characteristics of American Youth: Implications for Adult Outcomes

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Author Info
Joseph G. Altonji
Prashant Bharadwaj
Fabian Lange

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Abstract

We examine changes in the characteristics of American youth between the late 1970s and the late 1990s, with a focus on characteristics that matter for labor market success. We reweight the NLSY79 to look like the NLSY97 along a number of dimensions that are related to labor market success, including race, gender, parental background, education, test scores, and variables that capture whether individuals transition smoothly from school to work. We then use the re-weighted sample to examine how changes in the distribution of observable skills affect employment and wages. We also use more standard regression methods to assess the labor market consequences of differences between the two cohorts. Overall, we find that the current generation is more skilled than the previous one. Blacks and Hispanics have gained relative to whites and women have gained relative to men. However, skill differences within groups have increased considerably and in aggregate the skill distribution has widened. Changes in parental education seem to generate many of the observed changes

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13883.

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Date of creation: Mar 2008
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Handle: RePEc:nbr:nberwo:13883

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Find related papers by JEL classification:
J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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  2. James J. Heckman & Paul A. LaFontaine, 2007. "The American High School Graduation Rate: Trends and Levels," IZA Discussion Papers 3216, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. repec:fth:prinin:366 is not listed on IDEAS
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  14. Elizabeth U. Cascio & Ethan G. Lewis, 2006. "Schooling and the Armed Forces Qualifying Test: Evidence from School-Entry Laws," Journal of Human Resources, University of Wisconsin Press, vol. 41(2). [Downloadable!] (restricted)
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Cited by:
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  1. Geraint Johnes, 2008. "Changes In The Characteristics And Skills Of British Youth," Working Papers 005764, Lancaster University Management School, Economics Department. [Downloadable!]
  2. Darren Grant & William B. Green, . "The Simple Economics of Thresholds: Grades as Incentives," Working Papers 0901, Sam Houston State University, Department of Economics and International Business. [Downloadable!]
  3. Baron, Juan & Cobb-Clark, Deborah, 2008. "Occupational Segregation and the Gender Wage Gap in Private- and Public-Sector Employment: A Distributional Analysis," IZA Discussion Papers 3562, Institute for the Study of Labor (IZA). [Downloadable!]
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