Friday, September 29, 2006
Tweet[IWS] ILR IMPACT BRIEFS: WAGE INEQUALITY--INTERNATIONAL DIFFERENCES and their sources [August 2006]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
ILR Impact Briefs
http://digitalcommons.ilr.cornell.edu/impactbrief/
The Impact Brief series highlights the research and project based work conducted by ILR faculty that is relevant to workplace issues and public policy.
BRIEF #10 / August 2006 / WWW.ILR.CORNELL.EDU
The Sources of International Differences in Wage Inequality
by FRANCINE D. BLAU
Professor of Labor Economics (ILR)
LAWRENCE M. KAHN
Professor of Labor Economics (ILR)
http://digitalcommons.ilr.cornell.edu/briefs/21/
[full-text, 3 pages]
Research Question:
Wage inequality is greater in the United States than in eight other western nations; to what extent does the greater variation in adult literacy among Americans explain these differences in wage inequality?
Conclusions:
The wider distribution of cognitive test scores among adults in the U.S. offers only a partial explanation for this country's higher wage inequality. Significantly more important are the larger wage gaps in the U.S. between people with higher levels and people with lower levels of measured cognitive skill and between those with more years and those with fewer years of schooling; higher wage variation associated with "unexplained/unobserved" factors is another source of wage inequality. The higher returns to skill and education in the U.S. probably reflect lower levels of coverage by collective bargaining contracts and a larger relative supply of low-skilled workers.
Policy implications:
Labor market institutions, such as widespread union membership and coverage by collectively bargained contracts (as is the case in many European countries), may boost wages at the bottom and reduce overall wage inequality but also price some younger and/or less skilled workers out of the labor market. In the U.S., expanding the supply of higher skilled workers may reduce wages for this group and thereby lessen wage inequality; that is, policies designed to narrow the gaps in cognitive skill and years of education may begin narrowing the disparity in wages.
AND MUCH MORE....
For a more in-depth analysis, see Blau, F. D. & Kahn, L. M. (2003).
Do cognitive test scores explain higher U.S. wage inequality?
http://digitalcommons.ilr.cornell.edu/articles/50/
Suggested Citation
Blau, F. D. & Kahn, L. M. (2006). The sources of international differences in wage inequality (ILR Impact Brief #10). Ithaca, NY: School of Industrial and Labor Relations, Cornell University.
http://digitalcommons.ilr.cornell.edu/briefs/21/
[ILR Impact Briefs are written and/or edited by Maralyn Edid]
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
ILR Impact Briefs
http://digitalcommons.ilr.cornell.edu/impactbrief/
The Impact Brief series highlights the research and project based work conducted by ILR faculty that is relevant to workplace issues and public policy.
BRIEF #10 / August 2006 / WWW.ILR.CORNELL.EDU
The Sources of International Differences in Wage Inequality
by FRANCINE D. BLAU
Professor of Labor Economics (ILR)
LAWRENCE M. KAHN
Professor of Labor Economics (ILR)
http://digitalcommons.ilr.cornell.edu/briefs/21/
[full-text, 3 pages]
Research Question:
Wage inequality is greater in the United States than in eight other western nations; to what extent does the greater variation in adult literacy among Americans explain these differences in wage inequality?
Conclusions:
The wider distribution of cognitive test scores among adults in the U.S. offers only a partial explanation for this country's higher wage inequality. Significantly more important are the larger wage gaps in the U.S. between people with higher levels and people with lower levels of measured cognitive skill and between those with more years and those with fewer years of schooling; higher wage variation associated with "unexplained/unobserved" factors is another source of wage inequality. The higher returns to skill and education in the U.S. probably reflect lower levels of coverage by collective bargaining contracts and a larger relative supply of low-skilled workers.
Policy implications:
Labor market institutions, such as widespread union membership and coverage by collectively bargained contracts (as is the case in many European countries), may boost wages at the bottom and reduce overall wage inequality but also price some younger and/or less skilled workers out of the labor market. In the U.S., expanding the supply of higher skilled workers may reduce wages for this group and thereby lessen wage inequality; that is, policies designed to narrow the gaps in cognitive skill and years of education may begin narrowing the disparity in wages.
AND MUCH MORE....
For a more in-depth analysis, see Blau, F. D. & Kahn, L. M. (2003).
Do cognitive test scores explain higher U.S. wage inequality?
http://digitalcommons.ilr.cornell.edu/articles/50/
Suggested Citation
Blau, F. D. & Kahn, L. M. (2006). The sources of international differences in wage inequality (ILR Impact Brief #10). Ithaca, NY: School of Industrial and Labor Relations, Cornell University.
http://digitalcommons.ilr.cornell.edu/briefs/21/
[ILR Impact Briefs are written and/or edited by Maralyn Edid]
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 9:26 AM
