•  
  •  
 

Document Type

Article

Abstract

Since 1979, there has been an increasing gap in earnings between skilled and unskilled workers. Supply-side factors were shown to offset the demand shifts in the 1970’s, but the supply of college graduates stabilized during the 1980’s. As the wage inequality began to grow, focus turned to demand-side factors that contributed to the wage inequality. Three main factors were highlighted: changes in the industrial structure, international trade, and increased investment in technology. These factors expanded the relative demand for skilled workers, increasing the wage gap between skilled and unskilled workers. Increased educational subsidies is recommended as the best policy response.

Publication Date

Spring 1999

Journal Title

Major Themes in Economics

Volume

1

Issue

1

First Page

27

Last Page

39

Copyright

©1999 by Major Themes in Economics

Language

en

File Format

application/pdf

Included in

Economics Commons

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.