The changing roles of education and ability in wage determination

Journal of Labor Economics

Volumn 32, Issue 4, 2014, Pages 685-710

  Castex, Gonzalo ^a   Kogan Dechter, Evgenia ^b  

^a CENTRAL BANK OF CHILE   (Chile)

^b UNIVERSITY OF NEW SOUTH WALES   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84938588879     PISSN: 0734306X     EISSN: None     Source Type: Journal    
DOI: 10.1086/676018     Document Type: Article

References (38)

1. Acemoglu, Daron. 2002. Technical change, inequality, and the labor market. Journal of Economic Literature 40, no. 1:7–72.
2. Aizcorbe, Ana, and Stephen D. Oliner, and Daniel E. Sichel. 2008. Shifting trends in semiconductor prices and the pace of technological progress. Business Economics 43, no. 3:23–39.
3. Altonji, Joseph G., Prashant Bharadwaj, and Fabian Lange. 2012. Changes in the characteristics of American youth: Implications for adult outcomes. Journal of Labor Economics 30, no. 4:783–828.
4. Altonji, Joseph G., and Charles R. Pierret. 2001. Employer learning and statistical discrimination. Quarterly Journal of Economics 116, no. 1:313–50.
5. Bartel, Ann P., and Nachum Sicherman. 1998. Technological change and the skill acquisition of young workers. Journal of Labor Economics 16, no. 4:718–55.
6. Belley, Philippe, and Lance Lochner. 2007. The changing role of family income and ability in determining educational achievement. Journal of Human Capital 1, no. 1:37–89
7. Ben-Porath, Yoram. 1967. The production of human capital and the life cycle of earnings. Journal of Political Economy 75, no. 4:352–65.
8. Bishop, John H. 1991. Achievement, test scores, and relative wages. In Workers and their wages: Changing patterns in the United States, ed. Marvin H. Kosters. Washington, DC: American Enterprise Institute Press.
9. Blackburn, McKinley L., and David Neumark. 1993. Omitted-ability bias and the increase in the return to schooling. Journal of Labor Economics 11, no. 3:521–44.
10. Blundell, Richard, Antoine Bozio, and Guy Laroque. 2011. Labour supply responses and the extensive margin: The US, UK, and France. Unpublished manuscript, Institute for Fiscal Studies, University College London.
11. Bureau of Economic Analysis. 2003. Fixed assets and consumer durable goods in the United States, 1925–97. http://www.bea.gov/national/pdf /Fixed_Assets_1925_97.pdf.
12. Carneiro, Pedro, and James J. Heckman. 2002. The evidence on credit constraints in post-secondary schooling. Economic Journal 112, no. 482: 705–34.
13. Cascio, Elizabeth, and Ethan Lewis. 2006. Schooling and the Armed Forces Qualifying Test: Evidence from school entry laws. Journal of Human Resources 41, no. 2:294–318.
14. Castex, Gonzalo. 2010. Accounting for changes in college attendance profile: A quantitative life-cycle analysis. Unpublished manuscript, Economic Research Department, Central Bank of Chile.
15. Cawley, John, James J. Heckman, Lance Locher, and Edward Vytlacil. 1998. Understanding the role of cognitive ability in accounting for the recent rise in the economic return to education.Unpublished manuscript, Department of Economics, University of Rochester.
16. Chay, Kenneth Y., and David S. Lee. 2000. Changes in relative wages in the 1980s returns to observed and unobserved skills and black-white wage differentials. Journal of Econometrics 99, no. 1:1–38.
17. Cummins, Jason G., and Giovanni L. Violante. 2002. Investment-specific technical change in the United States (1947–2000): Measurement and macroeconomic consequences. Review of Economic Dynamics 5, no. 2: 243–84.
18. DiNardo, John, Nicole M. Fortin, and Thomas Lemieux. 1996. Labor market institutions and the distribution of wages, 1973–1992: A semi-parametric approach. Econometrica 64, no. 5:1001–44.
19. Farber, Henry S., and Robert Gibbons. 1996. Learning and wage dynamics. Quarterly Journal of Economics 111, no. 4:1007–47.
20. Gashi Ardiana N., Geoff Pugh, and Nick. Adnett. 2008. Technological change and employer-provided training: Evidence from German establishments. Economics of Education Working Paper Series 26, University of Zurich.
21. Goldin, Claudia, and Lawrence F. Katz. 2007. The race between education and technology: The evolution of U.S. educational wage differentials, 1890 to 2005. NBER Working Paper no. 12984, National Bureau of Economic Research, Cambridge, MA.
22. Greenwood, Jeremy, and Mehmet Yorokoglu. 1997. 1974. Carnegie Rochester Conference Series on Public Policy 46:49–95.
23. Grogger, Jeff, and Eric Eide. 1995. Changes in college skills and the rise in the college wage premium. Journal of Human Resources 30, no. 2:280– 310.
24. Heckman, James, and Edward Vytlacil. 2001. Identifying the role of cognitive ability in explaining the level of change in the return to schooling. Review of Economics and Statistics 83, no. 1:1–12.
25. Hornstein, Andreas, Per Krusell, and Giovanni L. Violante. 2007. Technology-policy interaction in frictional labour-markets. Review of Economic Studies 74, no. 4:1089–1124.
26. Juhn, Chinhui, Kevin M. Murphy, and Brooks Pierce. 1993. Wage inequality and the rise in returns to skill. Journal of Political Economy 101, no. 3:410–42.
27. Katz, Lawrence F. 2000. Technological change, computerization, and the wage structure. In Understanding the digital economy, ed. Erik Bryn-jolfsson and Brian Kahin, 217–44. Cambridge, MA: MIT Press.
28. Kinsler, Josh, and Ronni Pavan. 2011. Family income and higher education choices: The importance of accounting for college quality. Journal of Human Capital 5, no. 4:453–77.
29. Lovenheim, Michael F., and C. Lockwood Reynolds. 2011. Changes in postsecondary choices by ability and income: Evidence from the National Longitudinal Surveys of Youth. Journal of Human Capital 5, no. 1: 70–109.
30. McPherson, Michael S., and Morton Owen Schapiro. 1998. The student aid game: Meeting need and rewarding talent in American higher education, Princeton, NJ: Princeton University Press.
31. Murnane, Richard J., John B. Willett, and Frank Levy. 1995. The growing importance of cognitive skills in wage determination. Review of Economics and Statistics 77, no. 2:251–66.
32. Neal, Derek A., and William R. Johnson. 1996. The role of premarket factors in black-white wage differences. Journal of Political Economy 104, no. 5:869–95.
33. Nelson, Richard R., and Edmund S. Phelps. 1966. Investment in humans, technological diffusion, and economic growth. American Economic Review 56, no. 1:69–75.
34. Pillai, Unni. 2012. A model of technological progress in the microprocessor industry. Unpublished manuscript, College of Nanoscale Science and Engineering, University at Albany.
35. Rubinstein, Yona, and Daniel Tsiddon. 2004. Coping with technological progress: The role of ability in making inequality so persistent. Journal of Economic Growth 9, no. 3:305–46.
36. Segall, Daniel O. 1997. Equating the CAT-ASVAB. In Computerized adaptive testing: From inquiry to operation, ed. W. A. Sands, B. K. Waters, and J. R. McBride, 81–198. Washington, DC: American Psychological Association.
37. Taber, Christopher R. 2001. The rising college premium in the eighties: Return to college or return to unobserved ability ? Review of Economic Studies 68, no. 3:665–91.
38. Veum Jonathan R. 1993. Training among young adults: Who, what kind, and for how long? Monthly Labor Review 116, no. 8:27–32.