@techreport{NBERw5718, title = "Wage Inequality and Segregation by Skill", author = "Michael Kremer and Eric Maskin", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "5718", year = "1996", month = "August", URL = "http://www.nber.org/papers/w5718", 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}, }