Changes in Relative Wages, 1963-1987: Supply and Demand Factors
Lawrence F. Katz
Harvard University - Department of Economics; National Bureau of Economic Research (NBER)
Kevin M. Murphy
University of Chicago; National Bureau of Economic Research (NBER)
NBER Working Paper No. w3927
A simple supply and demand framework is used to analyze changes in the U.S. wage structure from 1963 to 1987. Rapid secular growth in the demand for more-educated workers, 'more-skilled' workers, and females appears to be the driving force behind observed changes in the wage structure. Measured changes in the allocation of labor between industries and occupations strongly favored college graduates and females throughout the period. Movements in the college wage premium over this period appear to be strongly related to fluctuations in the rate of growth of the supply of college graduates.
Number of Pages in PDF File: 53working papers series
Date posted: December 21, 2000
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