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Wage inequality trends and explanations

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Wage Inequality trends and explanations Economics 380
The U.S. wage distribution (2002) ,[object Object],[object Object]
Just the facts ,[object Object]
Facts cont’d ,[object Object]
Facts cont’d ,[object Object]
In real wage terms
Extending backwards ,[object Object]
Further back
Compared to other countries
Between groups inequality ,[object Object],Wage Differential Between College Graduates and High School Graduates, 1963-2001
Model
Results ,[object Object],[object Object]
Predictions ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
Immigration? ,[object Object],[object Object],[object Object]
Relative supply insourcing (Trade) ,[object Object],[object Object],[object Object],[object Object]
Demand Side ,[object Object],[object Object],Relative Wage of Skilled Workers Relative Employment of Skilled Workers A S 1 S 0 D 0 D 1 B C p 0 p 1 r 0 r 1
What is SBTC? ,[object Object],[object Object],[object Object],[object Object]
Evidence against ,[object Object],[object Object],[object Object],[object Object]
Aside: do computers raise wages? ,[object Object],[object Object],[object Object],[object Object]
A new generation – putting the skill back in SBTC ,[object Object],[object Object]
Skills in the labor market ,[object Object],[object Object],[object Object],[object Object],Wages rise Middle: blue collar, clerical High: doctors Low: manual labor, custodial
Skills in the labor market 2 ,[object Object],[object Object],[object Object],[object Object],Computers role in this: Can’t do these “skills” neither a substitute nor complement Good at following rules and reliability, substitutes Bad at abstract thought, but good at managing data to aid – likely complements.
So what happens ,[object Object],[object Object],[object Object],[object Object]
Evidence
One more possibility - institutions ,[object Object],[object Object],[object Object]
The meaning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Keeping it real

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