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Wage Inequality and Segregation by Skill

Michael Kremer () and Eric Maskin

Working papers from Massachusetts Institute of Technology (MIT), Department of Economics

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.

Keywords: WAGE DETERMINATION; DISCRIMINATION; SKILLED WORKERS (search for similar items in EconPapers)
JEL-codes: J31 J16 (search for similar items in EconPapers)
Date: 1996
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