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Session9 Juhn.pdf

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Radhika Gandhi
Summary of: Wage Inequality and the Rise in Returns to Skill - Juhn et al. (1993) - Section 14.pdf

The study covers the timeline of 1963 to 1989. The data covered is men’s wages. The focus
is on log of weekly and hourly wages of full time workers. The changes in wages is taken into
consideration and is divided interms of skills. The least skilled belong to the 10 th percentile
and most skilled belong to the 90th percentile.
The paper clarifies wages as prices
The Rise in Inequality:

From the above figures, we make a comparison of the weekly wages with the hourly wages.
We see that in weekly wages, the real weekly wages increases from the time period of 196373. In comparison to the hourly wages, we see that the hourly wages also grow for low
wage and high wage workers and a lot more than a median worker. The median hourly
wages fall after the 80’s. We can conclude that as hourly median wages fell, and weekly
stayed constant people were working longer hours.

In terms of the percentage change in weekly wages by percentile, we see that skill
differentials have increased in the points of the distribution.