Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?
2006 ◽
Vol 96
(3)
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pp. 461-498
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Keyword(s):
This paper shows that a large fraction of the 1973–2003 growth in residual wage inequality is due to composition effects linked to the secular increase in experience and education, two factors associated with higher within-group wage dispersion. The level and growth in residual wage inequality are also overstated in the March Current Population Survey (CPS) because, unlike the May or Outgoing Rotation Group (ORG) CPS, it does not measure directly the hourly wages of workers paid by the hour. The magnitude and timing of the growth in residual wage inequality provide little evidence of a pervasive increase in the demand for skill due to skill-biased technological change.
2020 ◽
Vol 73
(2)
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pp. 9221-9226
2007 ◽
Vol 28
(11)
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pp. 1275-1283
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2018 ◽
Vol 14
(6)
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pp. 445-452
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2005 ◽
Vol 119
(12)
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pp. 967-972
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Keyword(s):