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SSRN Electronic Journal
Article . 2014 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2014
Data sources: EconStor
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Math Matters: Education Choices and Wage Inequality

Authors: Rendall, Andrew; Rendall, Michelle;

Math Matters: Education Choices and Wage Inequality

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).

Country
Switzerland
Keywords

Lohnstruktur, Lohn, I24, J24, ECON Department of Economics, mathematics abilities, Wage inequality, 10007 Department of Economics, Wage inequality, SBTC, college majors, occupations, mathematics abilities, J31, ddc:330, wage inequality, occupations, Verteilungsgerechtigkeit, Honorar, Diskriminierung, Vergütung, 330 Economics, college majors, Einkommensverteilung, Mathematik, Gehalt, E24, I20, E25, Lohngleichheit, Einkommensunterschied, Bildung, E20, SBTC, jel: jel:E20, jel: jel:E25, jel: jel:E24, jel: jel:I20, jel: jel:J24, jel: jel:I24, jel: jel:J31

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
Green
bronze