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The Implications of Demographic-Specific Inflation Rates for Trends in Real Educational Wage Differentials

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  • Idson, Todd
  • Miller, Cynthia

Abstract

The authors use data from consumer expenditure surveys to investigate the impact on trends in real wage differentials of using group-specific price indexes. They find that inflation rates decrease monotonically with the education of the household head throughout the 1970s and early 1980s, and real educational wage differentials, calculated using education-specific price indexes, widened somewhat more than nominal differentials. The authors also find that differences by education level in fuel and energy consumption, whose relative prices increased during the 1970s, account for the majority of the educational index differences.

Suggested Citation

  • Idson, Todd & Miller, Cynthia, 1997. "The Implications of Demographic-Specific Inflation Rates for Trends in Real Educational Wage Differentials," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 464-469, October.
    • Handle: RePEc:bes:jnlbes:v:15:y:1997:i:4:p:464-69
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    Cited by:

    1. Bound, John & Holzer, Harry J, 2000. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 20-54, January.
    2. Leonardo Becchetti & Iftekhar Hasan & George Mavrotas, 2005. "Education, Financial Institutions, Inflation and Growth," WIDER Working Paper Series RP2005-72, World Institute for Development Economic Research (UNU-WIDER).
    3. Roberta Colavecchio & Ulrich Fritsche & Michael Graff, 2011. "Inflation Inequality in Europe," Macroeconomics and Finance Series 201102, University of Hamburg, Department of Socioeconomics.

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