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Two Sides of the Same Coin: U.S. "Residual" Inequality and the Gender Gap

Two Sides of the Same Coin: U.S. "Residual" Inequality and the Gender Gap We show that the narrowing gender gap and the growth in earnings inequality are consistent with a simple model in which skills are heterogeneous, and the growth in skill prices has been particularly strong for skills with which women are well endowed. Empirical analysis of DOT, CPS, and NLSY79 data finds evidence to support this model. A large increase in the prices of cognitive and people skills—skills with which women are well endowed—and a decline in the price of motor skills account for up to 40 percent of the rising inequality and 20 percent of the narrowing gender gap. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

Two Sides of the Same Coin: U.S. "Residual" Inequality and the Gender Gap

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Publisher
University of Wisconsin Press
ISSN
1548-8004

Abstract

We show that the narrowing gender gap and the growth in earnings inequality are consistent with a simple model in which skills are heterogeneous, and the growth in skill prices has been particularly strong for skills with which women are well endowed. Empirical analysis of DOT, CPS, and NLSY79 data finds evidence to support this model. A large increase in the prices of cognitive and people skills—skills with which women are well endowed—and a decline in the price of motor skills account for up to 40 percent of the rising inequality and 20 percent of the narrowing gender gap.

Journal

Journal of Human ResourcesUniversity of Wisconsin Press

Published: Apr 4, 2012

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