NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Wage Inequality and Segregation by Skill

Michael Kremer, Eric Maskin

NBER Working Paper No. 5718
Issued in August 1996
NBER Program(s):   LS   EFG

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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Document Object Identifier (DOI): 10.3386/w5718

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