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Training and the Growth of Wage Inequality

Author

Listed:
  • Jill Constantine
  • David Neumark

Abstract

Shifts in the incidence of various types of training over the 1980s favored more-educated, more-experienced workers. Coupled with the fact that this training is associated with higher wages, these shifts suggest that training may have contributed to the growth of wage inequality in this period. However, the shifts were apparently too small, or the returns to training too low, for training to have played a substantial role in this increase. The estimated changes in wage differentials associated with schooling and experience are at best only slightly smaller once we account for changes in the distribution of training across schooling and experience groups, as well as changes in the returns to training and in the length of training programs.

Suggested Citation

  • Jill Constantine & David Neumark, 1994. "Training and the Growth of Wage Inequality," NBER Working Papers 4729, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4729
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    References listed on IDEAS

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    Cited by:

    1. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 523-548.
    2. Daron Acemoglu, 1999. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," American Economic Review, American Economic Association, vol. 89(5), pages 1259-1278, December.
    3. Mark A. Loewenstein & James R. Spletzer, 1997. "Delayed Formal on-the-job Training," ILR Review, Cornell University, ILR School, vol. 51(1), pages 82-99, October.
    4. Marco Leonardi, 2007. "Firm heterogeneity in capital-labour ratios and wage inequality," Economic Journal, Royal Economic Society, vol. 117(518), pages 375-398, March.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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