Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?

  • Thomas Lemieux
    Department of Economics, University of British Columbia, 997–1873 East Mall, Vancouver, BC, V6R 2K9, Canada, and National Bureau of Economic Research.

書誌事項

公開日
2006-05-01
DOI
  • 10.1257/aer.96.3.461
公開者
American Economic Association

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<jats:p> 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. </jats:p>

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