Differences and Changes in Wage Structures (National Bureau by Richard B. Freeman, Lawrence F. Katz

By Richard B. Freeman, Lawrence F. Katz

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By Richard B. Freeman, Lawrence F. Katz

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Extra resources for Differences and Changes in Wage Structures (National Bureau of Economic Research--Comparative Labor Markets Series)

Sample text

3 compares movements in the log ratio of the earnings of peak earners (those with twenty-six to thirty-five years of experience) to new entrants for college and high school males. The figure shows that, while experience differentials expanded for both groups from 1967 to 1989, the time patterns of the changes differ substantially. Experience differentials for college graduates expanded from the early 1970sto 1978 and since then have declined. The gap between wages of peak earners and new entrants for less educated males increased sharply from 1979 to 1987 and exhibits a minor decline at the end of the 1980s.

11 in this volume; Erickson and Ichino, chap. 8 in this volume). Finally, the strength of the Japanese manufacturing sector may partially account for the much smaller magnitude of changes in skill differentials in Japan than in Britain and the United States during the 1980s. The remainder of the paper is organized as follows. 1 contrasts changes in overall wage inequality in these four countries over the last twentyfive years. 2 presents more detailed evidence on changes in the structure of wages in the four countries.

The fixed weights are the average share of each age (or experience) group in total male employment over the period 1967-90. B. CollegelUpper Secondary Log Wage Ratio in Starting Pay for New Entrants A. 4 3 035 4 - i . I l . 0 : 1967 1969 1971 1973 : i 1975 > : ~ 1977 : 1979 : i 1981 : i 1983 : : 1985 i ~ 1987 : 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 I Year 1989 Year D. Female/Male Log Wage Ratios for Those Aged 20-49 C. 551 1967 : : 1969 I : 1971 : b 1973 ~ : 1975 : : 1977 !

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