Immigration, Education and Wage Inequality

Immigration, Labor Market and Wage Inequality

Wage Inequality, Outsourcing, and Education

We present a simple model to explain why wage inequality in the U.S. increased in the 1980s but decreased in the 1970s, in which we argue that educational investment might deteriorate wage inequality temporarily, but permanently decrease it. A country would not necessarily present the Kuznets inversed-U curve if having sufficient educational investment. Acceleration in the educational investmen...

Low and Highly Skilled Labor Immigration and Wage Inequality

Fears of rising income inequalities loom large in recent discussions of how globalization and in particular migration are affecting economies and societies [1]. This paper addresses the question how labor immigration is related to wage inequality by using a specific-factors trade model. We show that the impact of immigration of low or highly skilled labor on wage inequality depends mainly on th...

Math Matters: Education Choices and Wage Inequality

SBTC is a powerful mechanism in explaining the increasing gap between educated and uneducated wages. However, SBTC cannot mimic the US within-group wage inequality. This paper provides an explanation for the observed intra-college group inequality by showing that the top decile earners’ significant wage growth is underpinned by the link between ex ante ability, math-heavy college majors and hig...

Evidence on Wage Inequality, Worker Education, and Technology

To explain these patterns, a variety of theories have been advanced, including those stressing the growth of international trade, changes in institutions (e.g., declining unionization and real minimum wage), rising immigration, and technological change. Growing levels of imports into the United States, for instance, may have hit workers in tradesensitive industries (e.g., textiles and apparel) ...