Abstract

Much recent research has been devoted to the rapid rise in the college wage premium during the 1980s [3; 5; 10; 13; 14]. Murphy and Welch [13] estimated that between 1979 and 1986, the college wage premium for all age groups increased almost 20 percentage points, while the college wage premium for workers with one to five years of experience grew by 38 percentage points. While the size of the college wage premium increase is impressive, especially among recent graduates, there is substantial disparity in this change among individual race/gender groups [2; 4]. Coleman [4] found that the wage premium increase for graduates with one to five years of experience was 45 percentage points for white men, 30 percentage points for white women, and 27 percentage points for black men, while the wage premium decreased by 3 percentage points for black women.

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