We show that the narrowing gender gap and the growth in earnings inequality are consistent with a simple model in which skills are heterogeneous, and the growth in skill prices has been particularly strong for skills with which women are well endowed. Empirical analysis of DOT, CPS, and NLSY79 data finds evidence to support this model. A large…

Researchers often identify degree effects by including degree attainment ("D") and years of schooling ("S") in a wage model, yet the source of independent variation in these measures is not well understood. We argue that "S" is negatively correlated with ability among degree-holders because the most able graduate the…

National Longitudinal Survey of Youth aptitude scores confirmed that differentials in union-nonunion wages are highest for workers with low measured skills and lowest for workers with high measured skills. Results suggest that unions are more successful where skills are homogenous and unionized employers are reluctant to hire both the most as well…

The specificity and generality of employer-provided training were analyzed using data from employers (Employer Opportunity Pilot Project) and workers (National Longitudinal Survey of Youth). Both groups indicated that most skills learned in training are not employer specific but are useful elsewhere. (SK)

Analysis of 17 years of data on engineering jobs was used to estimate a model of hierarchies. About two-thirds of changes in employment share across hierarchy levels was explained by shifts in the supply of skills. Assignment to higher levels was caused by skill accumulation and self-selection rather than technological differences across…

Census data from 1940-90 show that skill demands due to technological change accelerated inequality for less skilled workers, partly accounting for the slowed economic progress of black men. It is not female and immigrant labor market entrants, but increased competition from middle-skilled white men that appears to have adverse influence on black…

Overall, college graduates' earnings increased compared to high school graduates' in the 1980s. For men, skills acquired before college had not effect on the increase; for women, returns to math ability rose considerably. For men, the trend away from such subjects as education and toward engineering accounted for one-fourth of the rise in relative…

The 1969-1971 National Longitudinal Surveys data on young men were used to study the employed worker's choice among employed search, unemployed search, and not searching for a new job. The principal results are that current wages, seniority, collective bargaining coverage, employment outside construction, and employment by government are each…