This paper presents a unified treatment of and explanation for the evolution of wages and employment in the U.S. over the last 30 years. Specifically, we account for the pattern of changes in wage inequality, for the increased relative wage and employment of women, for the emergence of the...

In this paper, we examine three main questions concerning wages. First, how do wages of native workers depend on the skills of the worker and the characteristics of an economy? Second, what do differences between the characteristics of the US and the home country economies predict about the wage...