Inequality in the United States is high by international standards, and keeps rising. This is likely to bring significant social as well as economic costs, including lower growth. In this paper, we use the Survey of Adult Skills (PIAAC) to revisit the debate on the relative importance of skills...

Inequality in the United States is high by international standards, and keeps rising. This is likely to bring significant social as well as economic costs, including lower growth. In this paper, we use the Survey of Adult Skills (PIAAC) to revisit the debate on the relative importance of skills...

We revisit the relationship between cognitive skills and wage inequality and, contrary to most previous research, find that skills do play an important role in explaining differences in wage inequality between the United States and other OECD countries. We argue that previous research suffered...