The recent rise in wage inequality is usually attributed to skill-biased technical change (SBTC), associated with new computer technologies. We review the evidence for this hypothesis, focusing on the implications of SBTC for overall wage inequality and for changes in wage differentials between...

We develop a model in which a worker's skills determine the worker's current wage and sector. The market and the worker are initially uncertain about some of the worker's skills. Endogenous wage changes and sector mobility occur as labor market participants learn about these unobserved skills....

This article considers the estimation of the structure of wages in union and nonunion sectors. It proposes an estimator that extends standard panel data techniques to the case in which the return to the permanent component of the error term is differently rewarded in the two sectors. The...