In this paper we show that the two major developments experienced by the US labor market - rising inequality and narrowing of the male-female wage gap - can be explained by a common source: the increase in price of cognitive skills and the decrease in price of motor skills. We obtain the price...

There are many fundamental issues in regional and urban economics that hinge on worker skills. This paper builds on psychological approaches to learning to characterize the role of education and agglomeration in the skill development process. While the standard approach of equating skill to...

This paper documents the allocation of skills across cities and estimates the impact of agglomeration on the hedonic prices of worker skills. We find that large cities are more skilled than are small cities, but only to a modest degree. We also show that the increase in productivity associated...