Working Paper Number
US earnings inequality has increased dramatically since the 1970s, and the prospect of a reversal depends on what caused the trend. The standard explanation emphasizes skill-biased technical change. This paper briefly considers some aggregation issues and then proceeds to outline two alternative perspectives .power biased technical change and the effects of induced mismatch in the labor market .and their implications.
Skott, Peter, "Labor heterogeneity, inequality and institutional change" (2010). Economics Department Working Paper Series. 104.