Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245752 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14701
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
A vast literature aimed at understanding the nature and causes of wage inequality focuses on the skill premium as a key object of interest. In an environment where both the skill premium and the share of skilled workers are changing, however, the between-skill-group component of inequality may fall even as the skill premium rises – a pattern that is indeed observed in the U.S. and in many local labor markets during the 2010s. Understanding the evolution of the skill premium is therefore not always useful in terms of understanding why broad inequality measures are changing.
Subjects: 
between-group inequality
skill-biased technical change
skill premium
JEL: 
J31
J21
J24
Document Type: 
Working Paper

Files in This Item:
File
Size
923.03 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.