Economics, Econometrics and Finance
4 years ago

Changes in ability distribution impact wages more than education level.

RePEc: Research Papers in Economics
Counterfactual distributions of wages via quantile regression with endogeneity
Elena Martínez Sanchis, Ilker Kandemir, Juan Mora

Paper Summary

Related papers

Economics, Econometrics and Finance
8 years ago

Chinese imports hit low-wage U.S. earners harder than high-wage earners

Trade Impact
Public Finance
Macroeconomic Analysis
2 views
Economics, Econometrics and Finance
3 years ago

Education in Cameroon: Income Disparities Highlighted, Policy Implications Abound.

Labor Dynamics
2 views
Economics, Econometrics and Finance
4 years ago

Education Pays Off Big: Income Boost Across Earnings Levels in Transition Countries.

Public Finance
Economic Growth
Child Labor
2 views

The article examines changes in wage distributions by separating the effects of changes in population characteristics and returns to these characteristics. By using quantile regression and correcting for schooling decisions, the study isolates the impact of schooling and unobserved ability on wage distribution changes in the US from 1983 to 1993. Results show that changes in ability distribution had a negative effect on low wages, offsetting the positive impact of schooling changes. Additionally, changes in unobserved ability had a larger impact on wages than changes in distance to college.