Daily Archives: 26/11/2016

C. Changes in the Cost of Living Experienced by Skilled and Unskilled Workers between 1980 and 2000

I now quantify the changes in the cost of living experienced by high school and college graduates between 1980 and 2000. The top panel of Table 4 shows changes in the official CPI-U, as reported by the BLS, and normalized to 1 in 1980. This is the most widely used measure of inflation, and it is the measure that is almost universally used to deflate wages and incomes. According to this index, the price level doubled between 1980 and 2000. This increase is, by construction, the same for college graduates and high school graduates. The next panel shows the increase in the cost of housing faced by college graduates and high school graduates. College graduates and high school graduates are exposed to very different increases in the cost….

American Economic Journal: applied economics

American Economic Journal: applied economics ja nua ry 2013 is almost five times the fraction of college graduates in the city at the bottom of the distribution (Danville, VA), where only 12 percent of workers have a college degree. Other metropolitan areas in the top group include MSAs with an industrial mix that is heavy in high tech and R&D; such as San Jose, CA, San Francisco, CA, Boston, MA and Raleigh- Durham, NC; and MSAs with large universities, such as Ann Arbor, MI and Fort Collins, CO. Metropolitan areas in the top panel have a higher cost of housing, as measured by the average monthly rent for a two or three bedroom apartment, than metropolitan areas in the bottom panel. College share and the cost of housing….

Changes in the Location of Skilled and Unskilled Workers

Changes in the Location of Skilled and Unskilled Workers Throughout the paper, I use data from the 1980, 1990, and 2000 Censuses of Population.8 The geographical unit of analysis is the metropolitan statistical area (MSA) of residence. Rural households in the census are not assigned to an MSA. In order to keep my wage regressions as representative and as consistent with the previous literature as possible, I group workers who live outside an MSA by state, and treat these groups as additional geographical units. Table 1 documents differences in the fraction of college graduates across some US metropolitan areas. Specifically, the top (bottom) panel reports the 10 cities with the highest (lowest) fraction of workers with a college degree or more in 2000. Throughout the paper, college graduates….