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The Growing Importance of Cognitive Skills in Wage DeterminationRichard J. MurnaneHarvard University - Graduate School of Education; National Bureau of Economic Research (NBER) John B. WillettHarvard University - Graduate School of Education Frank S. LevyMassachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning March 1995 NBER Working Paper No. w5076 Abstract: Using data from two longitudinal surveys of American high school seniors, we show that basic cognitive skills had a larger impact on wages for 24-year-old men and women in 1986 than in 1978. For women, the increase in the return to cognitive skills between 1978 and 1986 accounts for all of the increase in the wage premium associated with post-secondary education. We also show that high school seniors' mastery of basic cognitive skills had a much smaller impact on wages two years after graduation than on wages six years after graduation.
Number of Pages in PDF File: 48 working papers seriesDate posted: June 26, 2000Suggested CitationContact Information
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