Full Citation

Title: Math Matters: Education Choices and Wage Inquality

Citation Type: Working Paper

Publication Year: 2014

ISBN:

ISSN: ISSN 1664-7041

DOI:

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Abstract: 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 highly quantitative occupations. We develop a general equilibrium model with multiple education outcomes, where wages are driven by individuals ex ante abilities and acquired math skills. A large portion of within-group and general wage inequality is explained by math-biased technical change (MBTC).

Url: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2446004

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Authors: Rendall, Andrew; Rendall, Michelle

Series Title:

Publication Number: 160

Institution: University of Zurich

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Publisher Location: Zurich, Switzerland

Data Collections: IPUMS CPS

Topics: Education, Labor Force and Occupational Structure

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