Training and the Growth of Wage Inequality. EQW Working Papers WP31.Report as inadecuate

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The relationship between training and the growth in wage inequality was examined through an analysis of data from the January 1983 and January 1991 supplements to the Current Population Survey. The analysis focused on whether the distribution of training has changed in ways that may explain changes in the wage structure during the period studied and whether the changes in training, combined with the effects of training on wages, are sufficiently large to have induced the changes in wage structure observed during the 1980s. The shifts in the incidence in the various types of training offered during the 1980s were found to favor more educated, more experienced workers. When the observed shifts were considered in conjunction with the fact that training is associated with higher wages, it was concluded that training may have contributed to the growth of wage inequality during the 1980s. Further analysis established, however, that training did not play any substantial role in the increase in wage inequality observed during the 1980s. It was hypothesized that either the shifts in training distribution were too small or the returns on training were too low for training to have been a major factor in increased wage inequality. (Contains 18 references.) (MN)

Descriptors: Education Work Relationship, Educational Opportunities, Job Training, On the Job Training, Outcomes of Education, Role of Education, Salary Wage Differentials

Author: Constantine, Jill M.; Neumark, David


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