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Wage Inequality and Segregation by Skill

Author

Listed:
  • Kremer, M
  • Maskin, E

Abstract

Evidence from the United States, Britain, and France suggests that recent growth in wage inequality has been accompanied by greater segragation of high- and low-skill workers into separate firms. A model in which workersof 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, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
    • Handle: RePEc:mit:worpap:96-23
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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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