Skills, education, and the rise of earnings inequality among the "other 99 percent".

Publisher: American Association for the Advancement of Science Country of Publication: United States NLM ID: 0404511 Publication Model: Print Cited Medium: Internet ISSN: 1095-9203 (Electronic) Linking ISSN: 00368075 NLM ISO Abbreviation: Science Subsets: MEDLINE

Publication: : Washington, DC : American Association for the Advancement of Science
Original Publication: New York, N.Y. : [s.n.] 1880-

Education, Professional/*economics ; Employment/*trends ; Income/*trends ; Salaries and Fringe Benefits/*trends; Education, Professional/statistics & numerical data ; Employment/statistics & numerical data ; Family Characteristics ; Humans ; Income/statistics & numerical data ; Marketing ; Salaries and Fringe Benefits/statistics & numerical data ; Schools/economics ; Socioeconomic Factors

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.
(Copyright © 2014, American Association for the Advancement of Science.)

Date Created: 20140524 Date Completed: 20140612 Latest Revision: 20140523

20250114

10.1126/science.1251868

24855259