Changes in the Structure of Wages During the 1980's: An Evaluation of Alternative Explanations

It is concluded that the major cause of the observed relative wage changes in the 1980's was a shift in the skill structure of labor demand brought about by biased technological change.

Abstract

Between 1979 and 1987 there were three significant changes in the wage structure in the United States. the pecuniary returns to schooling increased by about a third; the wages of older relative to younger workers with relatively iow education increased to some extent; and the wages of women relative to men rose by almost ten percent.