Skills, education, and
the rise of earnings inequality among the “other 99 percent” by David H.
Autor
Science 23 May 2014: Vol. 344 no. 6186 pp. 843-851
Abstract
The singular focus of public debate on the “top 1 percent” of
households overlooks the component of earnings inequality that is arguably most
consequential for the “other 99 percent” of citizens: the dramatic growth in
the wage premium associated with higher education and cognitive ability. This
Review documents the central role of both the supply and demand for skills in
shaping inequality, discusses why skill demands have persistently risen in
industrialized countries, and considers the economic value of inequality
alongside its potential social costs. I conclude by highlighting the
constructive role for public policy in fostering skills formation and
preserving economic mobility.