employers. We also find that there is a positive, albeit quantitatively small, relationship between wage inequality and training … inequality in the UK. Motivated by the above, we explore whether policies to subsidise firms' monetary cost of training can … improve earnings for the lower skilled and reduce inequality. We achieve this by developing a dynamic general equilibrium …

, which experienced a large decrease in earnings inequality while its real minimum wage increased from 1996-2012, we document … that the inequality decrease was bottom-driven yet widespread, with compression up to the 75th earnings percentile. We … consistent with the above facts, explaining 70 percent of the observed inequality decrease, with half of the decrease due to …