Labor market institutions, via their effect on the wage structure, affect the investment decisions of firms in labor markets with frictions. This observation helps explain rising wage inequality in the US, but a relatively stable wage structure in Europe in the 1980s. These different trends are...

Wage inequality between education groups in the United States has increased substantially since the early 1980s. The relative quantity of college-educated workers has also increased dramatically in the postwar period. This paper presents a unified framework where the dynamics of both skill...

This paper makes three contributions to the existing literature. First, it provides descriptive evidence on gender differentials by education level in the US labor market over the last twenty years. Second, it uses the structural estimation of a search model of the labor market to identify and...