This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. October 2011
  5. Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000

  • Pedro Carneiro
  • Sokbae Lee
American Economic Review
vol. 101, no. 6, October 2011
(pp. 2309–49)
Download Full Text PDF

Abstract

This paper presents new evidence that increases in college enrollment lead to a decline in the average quality of college graduates between 1960 and 2000, resulting in a decrease of 6 percentage points in the college premium. A standard demand and supply framework can qualitatively account for the trend in the college and age premia over this period, but substantial quantitative adjustments are needed to account for changes in quality. (JEL I23, J24, J31)

Citation

Carneiro, Pedro, and Sokbae Lee. 2011. "Trends in Quality-Adjusted Skill Premia in the United States, 1960-2000." American Economic Review, 101 (6): 2309–49. DOI: 10.1257/aer.101.6.2309

Additional Materials

JEL Classification

  • I23 Higher Education and Research Institutions
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • J31 Wage Level and Structure; Wage Differentials