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WISE 2P86 2011 Spring Chapter 8

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Women's and Gender Studies
Indra Hardeen

Chapter 8 Recent Developments in EarningsChanges that have occurred a flattening of the growth of real wages and a widening wage gap between high and low skilled workersOne of the most notable labour market trends in recent years is the dramatic increase in wage inequality that occurred among both men and women since 1980Wage inequality means a widening dispersion in the distribution of earnings within each group men and women so that the wage gap between those at the bottom and those at the top widened considerablyDeclining relative labor market position of the less skilled Increase in the returns to skillsDue to demand for skills due to technological changereal wagesMale workers also experienced stagnatingwages that have been adjusted for inflationThe decline in the gender gap wage gap since 1973 reflects not only womens real earnings growth but also mens weak real earnings trendsThere are two major explanations for the decline in the gender pay gap wage gap that were developed by economistsThe first is differ
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