This book provides a careful historical analysis of the co-evolution of educational attainment and the wage structure in the United States through the twentieth century. The authors propose that the twentieth century was not only the American Century but also the Human Capital Century. That is, the American educational system is what made America the richest nation in the world. Its educational system had always been less elite than that of most European nations. By 1900 the U.S. had begun to educate its masses at the secondary level, not just in the primary schools that had remarkable success in the nineteenth century.
The book argues that technological change, education, and inequality have been involved in a kind of race. During the first eight decades of the twentieth century, the increase of educated workers was higher than the demand for them. This had the effect of boosting income for most people and lowering inequality. However, the reverse has been true since about 1980. This educational slow-down was accompanied by rising inequality. The authors discuss the complex reasons for this, and what might be done to ameliorate it.
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Claudia Goldin is Henry Lee Professor of Economics at Harvard University.
Lawrence Katz is Elisabeth Allison Professor of Economics at Harvard University.
“This book represents the best of what economics has to offer, combining a broad theoretical perspective, careful consideration of data, detailed lessons from economic history, and a close look at the present.”―Alan Krueger, Princeton University
“A masterful work by two leading economists on some of the biggest issues in economics: economic growth, human capital, and inequality. There are fundamental insights in the book, not just about our past but also our future. Rigorous but not overly technical, this beautifully written book will appeal to educated lay people and economists alike.”―Steven D. Levitt, University of Chicago, co-author of Freakonomics
“The Race Between Education and Technology will stand as the definitive treatment of changes in income distribution and their causes, as well as of possible countervailing policies towards rising inequality. This is empirical economic scholarship at its finest.”―Lawrence Summers, Harvard University
“A staggering achievement of historical research and analysis and required reading for anyone who's tired of glib, ideologically-inspired, trendy prescriptions for how to fix America's education system.”―Sylvia Nasar, author of A Beautiful Mind
“An impressive combination of extensive historical research, careful empirical analysis, and thoughtful commentary on one of the most important questions of the day: to what extent does increasing inequality in incomes stem from our failure to increase educational attainment?”―William G. Bowen, President Emeritus, The Andrew W. Mellon Foundation
“The Race Between Education and Technology is a most important study, both for what it teaches us about the past and also in presenting policies for the future if America is to regain its world leadership in education.”―Stanley Engerman, University of Rochester
“If you want to understand the causes of the innovation deficit, I’d recommend adding one serious book to your summer reading list: The Race Between Education and Technology.”―David Leonhardt, New York Times
“This is the most important book on modern U.S. inequality to date.”―Tyler Cowen, marginalrevolution.com
“[Goldin and Katz] tackle the most important U.S. economic trend, and, hence, most critical domestic issue--growing income inequality...[America] now has the most unequal income and wage distributions of any high-income nation...Goldin and Katz's careful documentation of the changes in income distribution is an important public service. This alone would make their book essential reading. Yet they also offer a powerful explanation for what has driven changes in income inequality and point to solutions for addressing it...The good news is that if Goldin and Katz are right, the cure for income inequality is one most Americans would intuitively support: improving mass education. Mr Obama's spin-doctors should start translating Goldin and Katz's book into a campaign slogan at once.”―Chrystia Freeland, Financial Times
“One of the most important books of the year.”―Nicholas D. Kristof, New York Times
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