This paper links the rise of new industries populated by skill-intensive companies, and the divergence in labour incomes between skills. Our model explains inequality by the fact that as the skilled workers move towards new Silicon-Valley type firms, the reduced complementarity between skilled...

Using an exogenous variation in entry barriers, we develop and test a theory of wage inequality due to higher levels of startup entry. Researchers have argued that startups generate greater inequality in the labor market because new ventures lead to a higher within- and between-firm dispersion...