Wage Progression Among Less Skilled Workers
Despite the large amount of work in labor economics devoted towards wage progress we know surprisingly little about the mechanics of wage growth, particularly among low skilled workers. This paper takes a step in this direction by examining wage progression between and among moderate to low skilled workers. We find that once true labor market experience is taken into account appropriately, there are not large differences in earnings growth between low skilled workers and medium skilled workers despite the substantial difference in wage levels. In particular the return to experience for high school dropouts is almost exactly the same as the return for high school graduates. This return also does not differ across individuals from different family backgrounds. However, we do find differences between blacks and whites, and men and women.
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|Date of creation:||01 Feb 1999|
|Date of revision:|
|Contact details of provider:|| Postal: Harris Graduate School of Public Policy Studies, 1155 E. 60th Street Chicago, IL 60637|
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