In that way, the economy's demand for specific skill levels is met and wage divergences are limited.The problem in America is that movement between Mr Bivens' groups is limited.
Wages are uncertain and education, while increasing the expected wage, may increase or decrease wage variance.
It's also worth paying attention to the excellent work of Claudia Goldin and Lawrence Katz, who have traced recent growth in wage inequality to a divergence in the relative supply of workers of various educational attainments:Skill-biased technological change has generated rapid secular growth in the relative demand for more-educated workers for at least the past century.
Jens Søndergaard, at Nomura, said: "There is still a big divergence in wages.
That's a pretty big difference, which has generated a very large corresponding divergence in real wages, a phenomenon we examined in February.
Also, regarding wages, variation in the number of controls create a divergence between post-matching treated and controls: the relatively high wages have more controls than low wages.
The great divergence between productivity and median wages started in the late 1970s, as you know, and has become far more dramatic in recent years.
Weighted by the number of controls, the divergence is much smaller (the weighted mean wage for the matched controls is 3203 euro), but not exactly zero as we match on wage classes.
The number of people being paid less than the minimum wage of £6.08 rose this year and there was a big divergence in earnings between London and the rest of the country, according to the ONS annual survey of earnings.
Hence, changes in wage differences in the family may lead to within-household divergence in participation.
