Wage Inequality and Segregation by Skill

63 Pages Posted: 8 Jan 1997 Last revised: 23 Oct 2010

See all articles by Michael Kremer

Michael Kremer

Harvard University - Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER); Center for Global Development; Harvard University - Harvard Kennedy School (HKS)

Eric Maskin

Princeton University - Department of Economics; Harvard University - Department of Economics; Massachusetts Institute of Technology (MIT) - Department of Economics

Date Written: August 1996

Abstract

Evidence from the US, Britain, and France suggests that recent growth in wage inequality has been accompanied by greater segregation of high- and low-skill workers into separate firms. A model in which workers of different skill-levels are imperfect substitutes can simultaneously account for these increases in segregation and inequality either through technological change, or, more parsimoniously, through observed changes in the skill-distribution

Suggested Citation

Kremer, Michael R. and Maskin, Eric S., Wage Inequality and Segregation by Skill (August 1996). NBER Working Paper No. w5718. Available at SSRN: https://ssrn.com/abstract=3631

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