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Wage Inequality and Segregation by Skill

  • Michael Kremer
  • Eric Maskin

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

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5718.

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Date of creation: Aug 1996
Date of revision:
Handle: RePEc:nbr:nberwo:5718
Note: LS EFG
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