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Changes in Relative Wages, 1963-1987: Supply and Demand Factors

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Author Info
Lawrence F. Katz
Kevin M. Murphy

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Abstract

A simple supply and demand framework is used to analyze changes in the U.S. wage structure from 1963 to 1987. Rapid secular growth in the demand for more-educated workers, 'more-skilled' workers, and females appears to be the driving force behind observed changes in the wage structure. Measured changes in the allocation of labor between industries and occupations strongly favored college graduates and females throughout the period. Movements in the college wage premium over this period appear to be strongly related to fluctuations in the rate of growth of the supply of college graduates.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3927.

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Date of creation: Dec 1991
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Publication status: published as Quarterly Journal of Economics Feb, 1992 Volume 107, No. 1, pp. 35-78
Handle: RePEc:nbr:nberwo:3927

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