Can falling supply explain the rising return to college for younger men? Acohort-based analysis

Although the college-high school wage gap for younger U. S. men has doubled over the past 30 years, the gap for older men has remained nearly constant . In the United Kingdom and Canada the college-high school wage gap also in creased for younger relative to older men. Using a model with imperfect sub stitution between similarly educated workers in different age groups, we ar gue that these shifts reflect changes in the relative supply of highly educ ated workers across age groups. The driving force behind these changes is t he slowdown in the rate of growth of educational attainment that began with cohorts born in the early 1950s in all three countries.