NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Training and the Growth of Wage Inequality

Jill Constantine, David Neumark

NBER Working Paper No. 4729
Issued in May 1994
NBER Program(s):   LS

Shifts in the incidence of various types of training over the 1980s favored more-educated, more-experienced workers. Coupled with the fact that this training is associated with higher wages, these shifts suggest that training may have contributed to the growth of wage inequality in this period. However, the shifts were apparently too small, or the returns to training too low, for training to have played a substantial role in this increase. The estimated changes in wage differentials associated with schooling and experience are at best only slightly smaller once we account for changes in the distribution of training across schooling and experience groups, as well as changes in the returns to training and in the length of training programs.

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Document Object Identifier (DOI): 10.3386/w4729

Published: Industrial Relations, Vol. 35, no. 4 (October 1996): 491-510.

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