Changes in the Structure of Wages: The U.S. versus Japan
Lawrence F. Katz
Ana L. Revenga
This paper examines changes in wage differentials by educational
attainment and experience in the US. and Japan since the early 1970s. While
educational earnings differentials have expanded dramatically in the U.S. in
the 1980s, the college wage premium has increased only slightly in Japan. In
contrast to the large expansion in experience differentials for high school
males in the U.S., the wages of male new entrants have risen relative to more
experienced workers for both high school and college graduates in Japan from
1979 to 1987. Macroeconomic factors (increased openness, trade deficits, and
labor market slack) and changes in institutional structures (the decline in
unionization) are likely to have amplified each other in contributing to an
unprecedented decline in real and relative earnings of young less-skilled -
males in the U.S. in the 1980s. We further find that a sharp deceleration in
the rate of growth of college graduates as a fraction of the labor force in
the U.S. helps account for the much larger increase in the college wage
premium in the U.S. than in Japan in the 1980s.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.