Economic Policy Review

The Future Path and Consequences of the U.S. Earnings Gap

January 1995Volume 1, Number 1
JEL classification: J31, I28, J38

Author: Frank Levy

Both the growing college/high school earnings gap and the generally slow growth of real earnings have generated frustration with the political system. in the short run the earnings gap is likely to remain at roughly its current level. Over time, however, the increased concentration of low income households in poor school districts could perpetuate and exacerbate inequality.

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