Skill differentials in wages declined in the 1970's and rose in the 1980's, but aggregate wage inequality grew throughout the period. This divergence remains a puzzle in recent studies of U.S. wage inequality. In this paper the sometimes divergent paths of intergroup and intra-group inequality are explained by the human capital approach.
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Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number
1996_18.
Find related papers by JEL classification: D30 - Microeconomics - - Distribution - - - General D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials