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Explaining the college premium in the 1970s: As shown in Figure 7.8, the col-lege wage premium declined in the 1970s. Using a supply-and-demand graph, explain why this decline might have occurred.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter30: The Labor Market

Section: Chapter Questions

Problem 11E

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Explaining the college premium in the 1970s: As shown in Figure 7.8, the col-
lege wage premium declined in the 1970s. Using a supply-and-demand graph,

explain why this decline might have occurred.

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