Empirical Evidence on the Functional Form of the Earnings-Schooling Relationship

Revealing the Concealed Effect of Top Earnings on the Gender Gap in the Economic Value of Higher Education in the United States, 1980-2017

The expansion of women's educational attainment may seem to be a promising path toward achieving economic equality between men and women, given the consistent rise in the economic value of higher education. Using yearly data from 1980 to 2017, we provide an updated and comprehensive examination of the gender gap in education premiums, showing that it is not as promising as it could and should be. Women receive lower rewards to their higher education across the entire wage distribution, and this gender gap increases at the very top education premiums-the top quarter and, even more so, the top decile. Moreover, insufficient theoretical and methodological attention to this top premium effect has left gender inequality concealed in the extensive empirical studies on the topic. Specifically, when we artificially censor the top at the 80th wage percentile, the gender gaps in education premium reverse. Lastly, the growth in earnings inequality in the United States, which is greatly affected by the expansion of top earnings, is associated with the growing gender gap in education premiums over time. We discuss the meaning and implications of this structural disadvantage at a time when women's educational advantage keeps growing and higher education remains the most important factor for economic attainment.

Class and Income in Australia

This article presents the findings from an analysis of the rela tionship between class location and income. The class schemas employed in these analyses derive from the work of Wright, Poulantzas, Carchedi, Barbara and John Ehrenreich and Gold thorpe. In the context of the Australian workforce, individual class location is found to be significantly related to income level. A properly specified causal model incorporating class and other relevant factors can explain between approximately 33 and 37 per cent of the variation of income among Australians in the workforce.

Decomposing Trends in Inequality in Earnings into Forecastable and Uncertain Components

A substantial empirical literature documents the rise in wage inequality in the American economy. It is silent on whether the increase in inequality is due to components of earnings that are predictable by agents or whether it is due to greater uncertainty facing them. These two sources of variability have different consequences for both aggregate and individual welfare. Using data on two cohorts of American males we find that a large component of the rise in inequality for less skilled workers is due to uncertainty. For skilled workers, the rise is less pronounced.

Mother’s home time and the production of child quality

This paper deals with the effect of mother’s time spent out of the labor force, and presumably in the home, on the “production” of child quality, where child quality is measured by intelligence (IQ), level of schooling attained, and market earning power. The results indicate that mother’s home time is most effective in producing (male) child quality for mothers who have attained relatively high levels of schooling. The results suggest that education programs which devote equal school resources to all (male) children do not necessarily provide equal educational opportunity and that the influence of family background on economic success is indirect, operating through home investments in children.