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Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000

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  • Carneiro, Pedro

    () (University College London)

  • Lee, Sokbae

    () (Institute for Fiscal Studies, London)

Abstract

This paper presents new evidence that increases in college enrollment lead to a decline in the average quality of college graduates between 1960 and 2000, resulting in a decrease of 6 percentage points in the college premium. We show that although a standard demand and supply framework can qualitatively account for the trend in the college and age premia over this period, substantial quantitative adjustments still need to be made to account for changes in quality.

Suggested Citation

  • Carneiro, Pedro & Lee, Sokbae, 2010. "Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000," IZA Discussion Papers 5295, Institute for the Study of Labor (IZA).
    • Handle: RePEc:iza:izadps:dp5295
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    More about this item

    Keywords

    inequality; college premium; composition effects;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General

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