ERIC Number: ED201739
Record Type: RIE
Publication Date: 1981
Reference Count: 0
The Continuing Search for Better Predictors of Incomes of High School and College Graduates.
Witmer, David R.
The prediction that differences in incomes of high school and college graduates will not change is tested by applying standard statistical procedures to data describing actual income differences. Data from the United States Bureau of the Census describe annual incomes of men twenty-five years old and older during 1956-75. Report 1 displays results of using a standard multiple regression program to study these data on the assumption that differences in incomes of high school and college graduates one year predict future income differences. Results by adding the variable, gross national product in the year prior, appear in Report 2. Report 3 summarizes analyses incorporating the variable of starting salaries of college graduates. Reports 4-6 and appended Reports A1-A22 display results of analyses including other variables. A few brief summary statements are made. Two theories are discussed: (1) marginal productivity theory of wages, which posits entry into the world of work with a set of abilities to compete for jobs and wages on the basis of productivity and (2) job competition theory of wages that rests on the propensity of employers to reduce labor training costs by hiring the best educated people available at prevailing rates of pay. (YLB)
Publication Type: Reports - Research; Speeches/Meeting Papers; Numerical/Quantitative Data
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the Eastern Educational Research Association Annual Conference (Philadelphia, PA, March 1981); and at the Association for Institutional Research Forum (Minneapolis, MN, May 1981).