The Great Factor-Price Equalization, Two Views
By Arnold Kling
The African Development Bank reports: “Recent estimates put the size of the middle class in the region in the neighborhood of 300 to 500 million people, representing the population that is between Africa’s vast poor and the continent’s few elite. Africa’s emerging middle class comprises roughly the size of the middle class in India or China.”
Read the whole post.
if you divide the population by education, on average wages have risen only for those with graduate degrees over the past 10 years.
Look at the chart in the post, from Matthew Slaughter. In percentage terms, real earnings of college graduates (without graduate degrees) fell by more than those of high-school graduates (with no further education).
This is further evidence of the job polarization thesis of David Autor. It may be evidence that the solution of sending everybody to college may not work so well.