Real Wage Inequality† By Enrico Moretti* While nominal wage differences between skilled and unskilled workers have increased since 1980, college graduates have experienced larger increases in cost of living because they have increasingly concentrated in cities with high cost of housing. Using a cityspecific CPI, I find that real wage differences between college and high school graduates have grown significantly less than nominal differences. Changes in the geographical location of different skill groups are to a significant degree driven by city-specific shifts in relative demand. I conclude that the increase in utility differences between skilled and unskilled workers since 1980 is smaller than previously thought based on nominal wage differences. (JEL J22, J23, J24, J31, R23, R31) One of the most important developments in the US labor market….
Daily Archives: 26/11/2016
All students were asked to submit a research proposal as class assignment. Based on your submitted proposal please answer the following questions using PowerPoint presentation.
Explain your research design with a diagram/picture/graph using one slide only. Which strategy, or strategies, may be most appropriate for your research question(s) and objectives? Why this is the most appropriate strategy for your study? What threats to validity may be apparent in your research strategy? What threats to reliability may be apparent in your research strategy? Which data collection technique, or techniques, may be most appropriate for your research question(s) and objectives? Why the selected technique or techniques is/are the most appropriate for your study? What is the significance of this study? Why you think your selected topic is….
An Alternative Measure of Local Cost of Living My estimates in Section IIA are based on a definition of cost of living where the housing component of cost of living varies only by metropolitan area. In online Appendix Table A2, I show how my estimates change when an alternative definition of cost of living is adopted. In particular, I allow for the cost of housing experienced by different individuals to vary depending not just on their city of residence, but also on their education level, family structure, and race. The idea is that, within a city, not all households necessarily use the same type of housing. In New York, for example, the majority of residents in Manhattan have a college degree or more, while the majority of new….