Training and the Growth of Wage Inequality

JILL CONSTANTINE Williams College - General DAVID NEUMARK Public Policy Institute of California; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Abstract:

Shifts in the incidence of training over the 1980s favored more-educated, more-experienced workers. These shifts, coupled with increases in returns to skill, suggest that training may have contributed to the growth of between-group wage inequality in this period. However, because i) the shifts in training were too small, and ii) the returns to training did not rise, only small fractions of the increases in returns to schooling and experience over this period can be explained by changes in the distribution of or returns to training.

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