Arbeitspapier

Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?

Using microdata from the 1994-8 International Adult Literacy Survey (IALS) for nine countries, we examine the role of cognitive skills in explaining higher wage inequality in the United States. We find that while the greater dispersion of cognitive test scores in the United States plays a part in explaining higher U.S. wage inequality, higher labor market prices (i.e., higher returns to measured human capital and cognitive performance) and greater residual inequality still play important roles, and are, on average, quantitatively considerably more important than differences in the distribution of test scores in explaining higher U.S. wage inequality.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 1139

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Blau, Francine D.
Kahn, Lawrence
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2004

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Blau, Francine D.
  • Kahn, Lawrence
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2004

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