Real Wage Inequality

Enrico Moretti

American Economic Journal: Applied Economics, 2013, vol. 5, issue 1, 65-103

Abstract: While nominal wage differences between skilled and unskilled workers have increased since 1980, college graduates have experienced larger increases in cost of living because they have increasingly concentrated in cities with high cost of housing. Using a city-specific CPI, I find that real wage differences between college and high school graduates have grown significantly less than nominal differences. Changes in the geographical location of different skill groups are to a significant degree driven by city-specific shifts in relative demand. I conclude that the increase in utility differences between skilled and unskilled workers since 1980 is smaller than previously thought based on nominal wage differences. (JEL J22, J23, J24, J31, R23, R31)

JEL-codes: J22 J23 J24 J31 R23 R31 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/app.5.1.65
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Citations: View citations in EconPapers (222)

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Related works:
Working Paper: Real Wage Inequality (2008)
Working Paper: Real Wage Inequality (2008)
Working Paper: Real Wage Inequality (2008)
Working Paper: Real Wage Inequality (2008)
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