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Title:
Skills, education, and the rise of earnings inequality among the “other 99 percent”
Authors:
Autor, David H.
Publication:
Science, Volume 344, Issue 6186, pp. 843-851 (2014). (Sci Homepage)
Publication Date:
05/2014
Category:
ECONOMICS, Education, Economics, Sociology
Origin:
SCIENCE
Abstract Copyright:
(c) 2014: Science
DOI:
10.1126/science.1251868
Bibliographic Code:
2014Sci...344..843A

Abstract

The singular focus of public debate on the “top 1 percent” of households overlooks the component of earnings inequality that is arguably most consequential for the “other 99 percent” of citizens: the dramatic growth in the wage premium associated with higher education and cognitive ability. This Review documents the central role of both the supply and demand for skills in shaping inequality, discusses why skill demands have persistently risen in industrialized countries, and considers the economic value of inequality alongside its potential social costs. I conclude by highlighting the constructive role for public policy in fostering skills formation and preserving economic mobility.
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