Applied Economics Inequality

Max 1,500 words, Arial 12 point font & double spacing
Introduction
This should say what the essay is about and your particular slant on the subject and how you are going to develop it.
Main part
Contains the main contents and should have sub- headings, which form the skeleton of the essay. It should be structured in such a way that the subject unfolds in a coherent manner.
Conclusion
Draws the main points together.
Questions to answer:
1. Briefly explain the US pattern of educational wages over the period that is covered in the paper.
2. Now briefly explain what happened to the supply of graduates over the same period?
At the same time period (1963 1987) the supply of high school and college graduates
3. Why did the authors compositionally adjust the average wages that they then used to estimate the parameters in equation (17)?
4. Provide a full economic interpretation of the main findings from the paper and provide a critique based on the more recent evidence found in the wage inequality literature.

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