Changes in Relative Wages, 1963-1987: Supply and Demand Factors
Abstract
A simple supply and demand framework is used to analyze changes in the U. S. wage structure from 1963 to 1987. Rapid secular growth in the demand for more-educated workers, “more-skilled” workers, and females appears to be the driving force behind observed changes in the wage structure. Measured changes in the allocation of labor between industries and occupations strongly favored college graduates and females throughout the period. Movements in the college wage premium over this period appear to be strongly related to fluctuations in the rate of growth of the supply of college graduates.
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Computerization has disproportionately affected routine jobs and increased the productivity of workers with complementary skills, contributing to wage inequality.
“Consequently, computerization has had a disproportionate impact on jobs that involve routine tasks, such as data entry, bookkeeping, and assembly line work, and reducing demand for workers performing”
From Generative AI at Work (2023) · cites this paper as Katz and Murphy, 1992
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References 14 · Cited by 4,793
- Authors
- Katz, L. F., & Murphy, K. M.
- Affiliations
- National Bureau of Economic Research (US)
- ORCID
- Murphy, K. M.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1992-02-01
- Volume
- 107
- Issue
- 1
- Pages
- 35-78
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2107497267
- Cited by
- 4,793
- References
- 14
- Citations by year
- 2026: 143 · 2025: 177 · 2024: 164 · 2023: 155 · 2022: 153 · 2021: 165 · 2020: 201 · 2019: 136 · 2018: 152 · 2017: 184 · 2016: 129 · 2015: 183 · 2014: 187 · 2013: 198 · 2012: 153
- FWCI
- 167.21
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Gender Studies › Labour Market and Migration
- Social Sciences › Sociology and Political Science › Migration and Labor Dynamics
- Keywords
- wage structure, relative wages, college wage premium, labor supply and demand, female labor force participation, university graduates, skill premium, United States
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