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Wage Progression Among Less Skilled Workers

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  • Tricia Lynn Gladden
  • Christopher R. Taber

Abstract

Despite the large amount of work in labor economics devoted towards wage progress we know surprisingly little about the mechanics of wage growth, particularly among low skilled workers. This paper takes a step in this direction by examining wage progression between and among moderate to low skilled workers. We find that once true labor market experience is taken into account appropriately, there are not large differences in earnings growth between low skilled workers and medium skilled workers despite the substantial difference in wage levels. In particular the return to experience for high school dropouts is almost exactly the same as the return for high school graduates. This return also does not differ across individuals from different family backgrounds. However, we do find differences between blacks and whites, and men and women.

Suggested Citation

  • Tricia Lynn Gladden & Christopher R. Taber, 1999. "Wage Progression Among Less Skilled Workers," JCPR Working Papers 72, Northwestern University/University of Chicago Joint Center for Poverty Research.
    • Handle: RePEc:wop:jopovw:72
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    References listed on IDEAS

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    2. LaDonna Pavetti & Gregory Acs, 2001. "Moving Up, Moving Out, or Going Nowhere? A Study of the Employment Patterns of Young Women and the Implications for Welfare Mothers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 721-736.
    3. Nik Theodore & Rachel Weber, 2001. "Changing Work Organization in Small Manufacturers: Challenges for Economic Development," Economic Development Quarterly, , vol. 15(4), pages 367-379, November.

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