The Growing Importance of Cognitive Skills in Wage Determination / Richard J. Murnane, John B. Willett, Frank Levy.

By:

Murnane, Richard J

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w5076.Publication details: Cambridge, Mass. National Bureau of Economic Research 1995.Description: 1 online resource: illustrations (black and white)Subject(s):

J3 - Wages, Compensation, and Labor Costs

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Abstract: Using data from two longitudinal surveys of American high school seniors, we show that basic cognitive skills had a larger impact on wages for 24-year-old men and women in 1986 than in 1978. For women, the increase in the return to cognitive skills between 1978 and 1986 accounts for all of the increase in the wage premium associated with post-secondary education. We also show that high school seniors' mastery of basic cognitive skills had a much smaller impact on wages two years after graduation than on wages six years after graduation.

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March 1995.

Using data from two longitudinal surveys of American high school seniors, we show that basic cognitive skills had a larger impact on wages for 24-year-old men and women in 1986 than in 1978. For women, the increase in the return to cognitive skills between 1978 and 1986 accounts for all of the increase in the wage premium associated with post-secondary education. We also show that high school seniors' mastery of basic cognitive skills had a much smaller impact on wages two years after graduation than on wages six years after graduation.