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Abstract

Shifts in the incidence of training over the 1980s favored moreeducated, more-experienced workers. These shifts coupled with the increase in the returns to skill, suggest that training may have contributed to the growth of between-group wage inequality in this period. Wage equations estimated using data from the 1983 and 1991 CPS files, which include supplemental questions on training, show that training did not contribute much to the ... growth in between-group wage inequality. It appears that i) the shifts in training were too small and ii) the returns to training did not rise, implying only small fractions of the increases in returns to schooling and experience over this time period can be explained by changes in the distribution of returns to training.

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