Math Matters: Student Ability, College Majors, and Wage Inequality
Michelle Rendall and
No 1196, 2013 Meeting Papers from Society for Economic Dynamics
This paper assess increasing wage inequality by showing that the top deciles of college earners are enjoying significant relative wage growth, which is underpinned by the link between ex ante math ability, math-heavy college majors and highly quantitative occupations. This mechanism is further strengthened by the strong and accelerating shift away from math-heavy college majors and occupations. We develop a general equilibrium model with multiple education choices whose outcomes depends on ex ante abilities, coupled with preferences, that lead to occupational opportunities that mimic the facts presented. This research shows that a large portion of wage inequality is determined by initial math/quantitative abilities. Furthermore, these results imply that policy measures aimed at increasing college enrollment to decrease wage inequality do not address the underlying process and, in some cases, may exacerbate wage inequality.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Math matters: education choices and wage inequality (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:1196
Access Statistics for this paper
More papers in 2013 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().