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Education part of inequality story, Fed post says


Jul. 3, 2014 The Atlanta Journal-Constitution

Education is partly to blame for the rise in inequality, according to Atlanta Fed economists.

That’s not a reason to discourage schooling, they wrote this week, but it might be helpful in figuring out what to do about the yawning economic gap between Americans at the top and those farther down the chain.

In short: people with more education are doing better, people with high school or less are doing worse.

The economists tried to “control for” experience and age, that is, to mathematically eliminate them as factors. When they did, they found that higher wages paid to older, more experienced workers, was not a cause.

However, they found that education had an outsized impact.

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