Using regional variation to explain widening earnings differentials by educational attainment
During the 1980s and early 1990s the earnings gap between individuals with a college education and those with no more than a high school diploma widened substantially.Two leading explanations are technological improvement, either by increasing demand for skilled workers or by displacing unskilled and semi-skilled workers, and the effect of increased competition from imports. Since the late 1970s, aggregate wage growth has varied significantly across states and regions. Moreover, while wage differentials have widened in virtually all states and regions, there is considerable variation in the degree and timing of this widening. In this paper we develop indices, based on industry of employment, of technological advancement and of exposure to competition from manufactured imports for each state.These indices are used to test the impact of technological change and trade on earnings differentials by educational attainment.
|Date of creation:||1995|
|Date of revision:|
|Contact details of provider:|| Postal: 33 Liberty Street, New York, NY 10045-0001|
Web page: http://www.newyorkfed.org/
More information through EDIRC
|Order Information:|| Email: |
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.:
- 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.
- Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
- Stephen Nickell & D. Nicolitsas, 1994.
LSE Research Online Documents on Economics
51644, London School of Economics and Political Science, LSE Library.
- George J. Borjas & Valerie A. Ramey, 1993. "Foreign Competition, Market Power and Wage Inequality: Theory and Evidence," NBER Working Papers 4556, National Bureau of Economic Research, Inc.
- Jaeger, David A, 1997. "Reconciling the Old and New Census Bureau Education Questions: Recommendations for Researchers," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(3), pages 300-309, July.
- Randall W. Eberts, 1989. "Accounting for the recent divergence in regional wage differentials," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 14-26.
- Olivier Jean Blanchard, 1995. "Macroeconomic implications of shifts in the relative demand for skills," Economic Policy Review, Federal Reserve Bank of New York, issue Jan, pages 48-53.
- Topel, Robert H, 1994. "Regional Labor Markets and the Determinants of Wage Inequality," American Economic Review, American Economic Association, vol. 84(2), pages 17-22, May.
- D. Brauer & S. Hickok, 1994. "Explaining the growing gap between low-skilled and high-skilled wages," Research Paper 9418, Federal Reserve Bank of New York.
- Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc.
- Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
- Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:fip:fednrp:9521. 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: (Amy Farber)
If references are entirely missing, you can add them using this form.