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….
In this section, I estimate how much of the increase in nominal wage differences between college graduates and high school graduates is accounted for by differences in the cost of living. In particular, in Section IA, I show estimates of the college premium in nominal and real terms. In Section IB, I discuss whether my estimates are biased by the presence of unobserved worker characteristics or unobserved housing characteristics. In Section IC, I show estimates of the college premium in real terms
Nominal and Real Conditional Wage Difference between Workers with a High School Degree and Workers with College or More, by Year–Baseline Estimates 1980 1990 2000 1980–2000 increase 1980 1990 2000 1980–2000 increase (1) (2) (3) (4) (5) (6) (7) (8) Model 1 Nominal wage difference 0.40….