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SSRN Electronic Journal
Article . 2014 . Peer-reviewed
Data sources: Crossref
https://dx.doi.org/10.5167/uzh...
Other literature type . 2014
Data sources: Datacite
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

This paper provides an explanation for part of the increasing wage inequality between the mid-1970s and 2010 by showing that the top deciles of college earners' significant relative wage growth is underpinned by the link between ex ante math ability, math-heavy college majors and highly quantitative occupations. This mechanism is further strengthened on the supply-side by a strong and accelerating shift away from math-heavy college majors and occupations for successive cohorts. We develop a general equilibrium model with multiple education options, where occupational outcomes depend on individuals' ex ante math abilities and study preferences. This research shows that a large portion of wage inequality is determined by initial math/quantitative abilities. Furthermore, these results imply that policy measures aimed at increasing college enrollment, to decrease wage inequality, do not address the underlying process and, in some cases, may exacerbate wage inequality.

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, 330 Economics, Vergütung, 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