This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. We show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality....

This paper shows that skill mismatch is a signifi cant source of inequality in real earnings in the U.S. and that a substantial fraction of the increase in wage dispersion during the period 1973-2002 was due to the increase in mismatch rates and mismatch premia. In 2000-2002 surplus and defi cit...

We examine data for urban workers in the non-agricultural sector across three decades, 1983-2017, and find that earnings inequality increased during 1983-2004, was largely stable during 2004-11, and decreased during 2011-17. We explore whether decline in routine jobs and change in demand for...