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What are the causes of rising wage inequality in the United States?

Author

Listed:
  • John Bound
  • George Johnson

Abstract

During the last 15 years--especially in the 1980s--wage inequality rose in the United States. It appears that this can be explained by a secular shift in production functions favoring workers with intellectual rather than manual skills, together with slower growth in the supply of skilled labor than in the previous decade.

Suggested Citation

  • John Bound & George Johnson, 1995. "What are the causes of rising wage inequality in the United States?," Economic Policy Review, Federal Reserve Bank of New York, issue Jan, pages 9-17.
  • Handle: RePEc:fip:fednep:y:1995:i:jan:p:9-17:n:v.1.no.1
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    Citations

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    Cited by:

    1. Mora, Ricardo, 1999. "Wage inequality and structural change," UC3M Working papers. Economics 6117, Universidad Carlos III de Madrid. Departamento de Economía.
    2. David A. Brauer, 1995. "Using regional variation to explain widening earnings differentials by educational attainment," Research Paper 9521, Federal Reserve Bank of New York.
    3. Peretto, Pietro F. & Seater, John J., 2013. "Factor-eliminating technical change," Journal of Monetary Economics, Elsevier, vol. 60(4), pages 459-473.
    4. Glazer, Amihai & Ranjan, Priya, 2003. "Preference heterogeneity, wage inequality, and trade," Journal of International Economics, Elsevier, vol. 60(2), pages 455-469, August.
    5. Thia, Jang Ping, 2008. "Evolution of locations, specialisation and factor returns with two distinct waves of globalisation," LSE Research Online Documents on Economics 19567, London School of Economics and Political Science, LSE Library.
    6. Arindam Banik & Pradip K. Bhaumik, 2005. "Supporting the poor but skilled artisans by making assets available to them: an empirical investigation in rural India," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(1), pages 45-66.
    7. Kiley, Michael T, 1999. "The Supply of Skilled Labour and Skill-Biased Technological Progress," Economic Journal, Royal Economic Society, vol. 109(458), pages 708-724, October.
    8. Lovely, Mary E., 1995. "Economic Development in a Global Context: Implications of the Uruguay Round for Federal Tax Policy," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(3), pages 397-407, September.
    9. David R. Howell & Ellen Houston & William Milberg, 1999. "Demand Shifts and Earnings Inequality: Wage and Hours Growth by Occupation in the U.S., 1970-97," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 1999-02, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    10. Sturgill, Brad, 2012. "The relationship between factor shares and economic development," Journal of Macroeconomics, Elsevier, vol. 34(4), pages 1044-1062.
    11. Pietro Peretto & John J. Seater, 2006. "Augmentation or Elimination?," DEGIT Conference Papers c011_060, DEGIT, Dynamics, Economic Growth, and International Trade.
    12. Malveaux, Julianne, 1999. "Women of color in the labor market," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 663-678.
    13. Jang Ping Thia, 2008. "Evolution of Locations, Specialisation and Factor Returns with Two Distinct Waves of Globalisation," CEP Discussion Papers dp0875, Centre for Economic Performance, LSE.
    14. Joseph A. Ritter, 1996. "Opening Pandora's box: the measurement of average wages," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 15-21.
    15. Gonzalez, Arturo & Hilmer, Michael J., 2006. "The role of 2-year colleges in the improving situation of Hispanic postsecondary education," Economics of Education Review, Elsevier, vol. 25(3), pages 249-257, June.

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