Paper · 1992 · advanced level
Changes in Relative Wages, 1963–1987: Supply and Demand Factors
Lawrence F. Katz, Kevin M. Murphy
- Venue
- Quarterly Journal of Economics, 107(1), 35–78
- Link
- not available
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In plain language
Introduced the idea that the college/non-college wage gap moves with the balance between the supply of skilled workers and rising demand from technology.
Technical summary
Canonical supply-and-demand model of skill-biased technological change (SBTC): steady demand growth for skilled labor versus uneven supply growth explains movements in the education wage premium.
Key takeaways
- Foundational to the entire SBTC literature that dominates mainstream labor economics' account of rising wage inequality.
Themes
Related works
- Trends in U.S. Wage Inequality: Revising the Revisionists — David H. Autor et al., 2008
- The Race between Education and Technology — Claudia Goldin & Lawrence F. Katz, 2008
- Skills, Education, and the Rise of Earnings Inequality among the ‘Other 99 Percent’ — David H. Autor, 2014