IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Winning the Race against Technology

Listed author(s):
  • KAWAGUCHI Daiji
  • MORI Yuko

This study examines the importance of the supply factor as a determinant of the college wage premium by comparing the trends of the college wage premium between Japan and the United States. The wage differential between college and high school graduates decreased from 0.35 log point to 0.34 log point in Japan between 1986 and 2008, while during the same period, it increased from 0.43 to 0.65 in the United States. This paper demonstrates that the more rapid increase in the number of college graduates in Japan explains about one-third of these contrasting trends. A simulation indicates that if the supply in the United States had followed that in Japan, the return to college would have increased by 0.15 point instead of the actual 0.23 point. The difference in post-war fertility trends largely explains the difference in the supply increase of college graduates between the two countries.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.rieti.go.jp/jp/publications/dp/14e017.pdf
Download Restriction: no

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 14017.

as
in new window

Length: 48 pages
Date of creation: Apr 2014
Handle: RePEc:eti:dpaper:14017
Contact details of provider: Postal:
11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901

Phone: +81-3-3501-1363
Fax: +81-3-3501-8577
Web page: http://www.rieti.go.jp/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
  2. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
  3. David Card & John E. DiNardo, 2002. "Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," NBER Working Papers 8769, National Bureau of Economic Research, Inc.
  4. Ryo Kambayashi & Daiji Kawaguchi & Ken Yamada, 2013. "Minimum Wage in a Deflationary Economy: The Japanese Experience, 1994–2003," Working Papers 07-2013, Singapore Management University, School of Economics.
  5. David Autor & Lawrence Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
  6. Nicole M. Fortin, 2006. "Higher-Education Policies and the College Wage Premium: Cross-State Evidence from the 1990s," American Economic Review, American Economic Association, vol. 96(4), pages 959-987, September.
  7. John Bound & Sarah Turner, 2006. "Cohort Crowding: How Resources Affect Collegiate Attainment," NBER Working Papers 12424, National Bureau of Economic Research, Inc.
  8. John Bound & Michael Lovenheim & Sarah Turner, 2009. "Why Have College Completion Rates Declined? An Analysis of Changing Student Preparation and Collegiate Resources," NBER Working Papers 15566, National Bureau of Economic Research, Inc.
  9. Ono, Hiroshi, 2006. "Lifetime Employment in Japan: Concepts and Measurements," SSE/EFI Working Paper Series in Economics and Finance 624, Stockholm School of Economics, revised 06 Apr 2007.
  10. Kawaguchi, Daiji & Ueno, Yuko, 2013. "Declining long-term employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 28(C), pages 19-36.
  11. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
  12. Jeremy Lise & Nao Sudo & Michio Suzuki & Ken Yamada & Tomoaki Yamada, 2013. "Wage, Income and Consumption Inequality in Japan, 1981-2008: from Boom to Lost Decades," Working Papers 2013-011, Human Capital and Economic Opportunity Working Group.
  13. Masanori Hashimoto, 1974. "Economics of Postwar Fertility in Japan," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 225-254 National Bureau of Economic Research, Inc.
  14. Koeniger, Winfried & Leonardi, Marco & Nunziata, Luca, 2004. "Labour Market Institutions and Wage Inequality," IZA Discussion Papers 1291, Institute for the Study of Labor (IZA).
  15. Hamaaki, Junya & Hori, Masahiro & Maeda, Saeko & Murata, Keiko, 2011. "Changes in the Japanese Employment System in the Two Lost Decades," PIE/CIS Discussion Paper 511, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  16. Maarten Goos & Alan Manning, 2003. "Lousy and lovely jobs: the rising polarization of work in Britain," LSE Research Online Documents on Economics 20002, London School of Economics and Political Science, LSE Library.
  17. Robert L. Clark & Naohiro Ogawa, 1992. "The Effect of Mandatory Retirement on Earnings Profiles in Japan," ILR Review, Cornell University, ILR School, vol. 45(2), pages 258-266, January.
  18. Ryo Kambayashi & Daiji Kawaguchi & Izumi Yokoyama, 2006. "Wage Distribution in Japan: 1989-2003," Hi-Stat Discussion Paper Series d06-183, Institute of Economic Research, Hitotsubashi University.
  19. Ken Yamada & Daiji Kawaguchi, 2012. "Changing Unchanged Inequality: Higher Education, Youth Population, and the Japan's Seniority Wages," Global COE Hi-Stat Discussion Paper Series gd12-243, Institute of Economic Research, Hitotsubashi University.
  20. Yoshi-Fumi Nakata & Carl Mosk, 1987. "The Demand for College Education in Postwar Japan," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 377-404.
  21. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.
  22. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
  23. Hashimoto, Masanori, 1974. "Economics of Postwar Fertility in Japan: Differentials and Trends," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S170-S194, Part II, .
  24. Katz, Lawrence F. & Revenga, Ana L., 1989. "Changes in the structure of wages: The United States vs Japan," Journal of the Japanese and International Economies, Elsevier, vol. 3(4), pages 522-553, December.
  25. Hashimoto, Masanori, 1979. "Bonus Payments, on-the-Job Training, and Lifetime Employment in Japan," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1086-1104, October.
  26. Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
  27. Masanori Hashimoto, 1974. "Economics of Postwar Fertility in Japan: Differentials and Trends," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 170-199 National Bureau of Economic Research, Inc.
  28. Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 285-326.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:14017. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.