Is The Wage Gap Between High School And College Graduates Widening? A Panel Analysis
<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="color: black; font-size: 10pt;"><span style="font-family: Times New Roman;">This study examines the wage growth of high school graduates and college graduates. The NLSY-79 data is employed. The data shows that college graduates earn a premium over high school graduates and the premium is widening over time. <span style="mso-spacerun: yes;"> </span>A panel regression model was estimated for the years 1982 until 2004. The results show that education has a significant positive effect on wages and it is the primary determinant of the wage gap. Also, age and gender were found to have a significant effect on wages. Testing the impact of occupation, only managerial, clerical, and service jobs had a significant effect on wages.<span style="mso-spacerun: yes;"> </span>Production jobs were statistically insignificant as suggested by the labor market polarization theory.</span></span></p>