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Wage Inequality and Segregation by Skill

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  • Michael Kremer
  • Eric Maskin

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

  • Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation by Skill," NBER Working Papers 5718, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5718
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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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