Abstract

http://ssrn.com/abstract=235391
 
 

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Earnings within Education Groups and Overall Productivity Growth


John Laitner


University of Michigan at Ann Arbor - Department of Economics



Abstract:     
To offer a possible interpretation for recent empirical findings on earnings growth, this paper constructs a simple model with endogenous human capital investment, a distribution of natural abilities, and unbiased technological progress. The model predicts that in the long run, average earnings within any education group will grow more slowly than average wages overall. It also predicts that average earnings in high-education groups ultimately will rise relative to average earnings in low-education groups. In the model, these processes do not imply secular increases in the degree of inequality in the overall cross-sectional distribution of earnings.

Number of Pages in PDF File: 26

JEL Classification: J24, J31

working papers series





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Date posted: July 5, 2000  

Suggested Citation

Laitner, John, Earnings within Education Groups and Overall Productivity Growth. Available at SSRN: http://ssrn.com/abstract=235391 or http://dx.doi.org/10.2139/ssrn.235391

Contact Information

John P. Laitner (Contact Author)
University of Michigan at Ann Arbor - Department of Economics ( email )
611 Tappan Street
Ann Arbor, MI 48109-1220
United States
734-763-9620 (Phone)
734-763-6866 (Fax)
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References:  21
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