This paper addresses the importance of compositional changes in the labor force for the development of the wage distribution. Demographic change and higher educational attainment imply a shift toward employees with more experience and/or better education. These groups are characterized by higher...

This paper develops a dynamic general equilibrium model to highlight the role of human capital accumulation of agents differentiated by skill type in the joint determination of social mobility and the skill premium. We first show that our model captures the empirical co-movement of the skill...

SBTC is a powerful mechanism in explaining the increasing gap between educated and uneducated wages. However, SBTC cannot mimic the US within-group wage inequality. This paper provides an explanation for the observed intra-college group inequality by showing that the top decile earners’...

This paper evaluates the impact of education on measured inequality across the wage distribution using pooled records from the 2005 and 2010 Cameroon labour force surveys, wage equations and standard inequality measures. Returns to education increased monotonically. Yet incremental returns were...

Education-related changes are often argued as the main reasons for changes in earnings distribution. However, omitted variable and measurement error biases possibly affect econometric estimates of these effects. Brazil experienced a sharp fall of individual labour income inequality between 1996...