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Wage Progression Among Less Skilled Workers

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  • Tricia Lynn Gladden
  • Christopher R. Taber
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    Abstract

    Despite the large amount of work in labor economics devoted towards wage progress we know surprisingly little about the mechanics of wage growth, particularly among low skilled workers. This paper takes a step in this direction by examining wage progression between and among moderate to low skilled workers. We find that once true labor market experience is taken into account appropriately, there are not large differences in earnings growth between low skilled workers and medium skilled workers despite the substantial difference in wage levels. In particular the return to experience for high school dropouts is almost exactly the same as the return for high school graduates. This return also does not differ across individuals from different family backgrounds. However, we do find differences between blacks and whites, and men and women.

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    Bibliographic Info

    Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 72.

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    Date of creation: 01 Feb 1999
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    Handle: RePEc:wop:jopovw:72

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    Postal: Harris Graduate School of Public Policy Studies, 1155 E. 60th Street Chicago, IL 60637
    Phone: 773-702-0472
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    Web page: http://www.jcpr.org/wp/ByDate.html
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    References

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    1. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
    2. Murphy, Kevin M & Welch, Finis, 1992. "The Structure of Wages," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 285-326, February.
    3. Stephen V. Cameron & James J. Heckman, 1991. "The Nonequivalence of High School Equivalents," NBER Working Papers 3804, National Bureau of Economic Research, Inc.
    4. Jacob Mincer & Boyan Jovanovic, 1981. "Labor Mobility and Wages," NBER Chapters, in: Studies in Labor Markets, pages 21-64 National Bureau of Economic Research, Inc.
    5. Rosella Gardecki & David Neumark, 1997. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes," NBER Working Papers 5899, National Bureau of Economic Research, Inc.
    6. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
    7. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
    8. Flinn, Christopher J, 1986. "Wages and Job Mobility of Young Workers," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S88-S110, June.
    9. Audrey Light & Kathleen McGarry, 1998. "Job Change Patterns And The Wages Of Young Men," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 276-286, May.
    10. David Neumark, 1998. "Youth Labor Markets in the U.S.: Shopping Around vs. Staying Put," NBER Working Papers 6581, National Bureau of Economic Research, Inc.
    11. James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    12. Light, Audrey & Ureta, Manuelita, 1995. "Early-Career Work Experience and Gender Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 121-54, January.
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    Cited by:
    1. David M. Blau, 2000. "Child Care Subsidy Programs," NBER Working Papers 7806, National Bureau of Economic Research, Inc.
    2. LaDonna Pavetti & Gregory Acs, 2001. "Moving Up, Moving Out, or Going Nowhere? A Study of the Employment Patterns of Young Women and the Implications for Welfare Mothers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 721-736.

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