The Changing Pattern of Wage Growth for Low Skilled Workers
One of the fundamental facts in labor economics is that, on average, wages tend to rise rapidly early
in a worker’s career. Since wage growth during the early stages of the one’s career provides a potential
pathway out of poverty, it is important to understand what causes this wage progression and how it is
affected by changes in the overall economy. In this chapter, we focus on the key components that
determine an individual's early career wage growth and how these factors have changed for less skilled
workers over the last twenty years. In particular, we examine the relative importance of accumulating
work experience as compared to the quality of job matches in influencing wage growth over this time
period.
