In this paper we study the evolution of lifetime labour income inequality by constructing present value life cycle measures that incorporate both earnings and employment risk. We find that, even though lifetime income inequality is 40% less than earnings inequality, the total increase in...

Separate identification of the price and quantity of human capital has important implications for understanding key issues in economics. Price and quantity series are derived for four education levels. The price series are highly correlated and they exhibit a strong secular trend. Three...

This paper presents and estimates a unified model where both human capital investment and job search are endogenized. This unification enables us to quantify the relative contributions of each mechanism to life cycle earnings growth, while investigating potential interactions between human...

Gender wage differentials in the UK are examined using a general equilibrium search model. This framework permits an assessment of male-female differences in labour market behaviour on gender wage differentials. The model captures worker decisions leading to transitions between labour market...

During the mid 1980s young, low-skilled adults in Canada were much more likely to be out of work than their U.S. counterparts. The unemployment rate gap for this cohort was 7 percentage points. At the same time wage inequality was higher in the United States. Using panel data from the U.S....

We analyze an equilibrium search model with three sources for wage and unemployment differentials among workers with the same (observed) human capital but different appearance (race): unobserved productivity, search intensities, and discrimination due to an appearance-based employer disutility...

Evidence from the U.S. National Longitudinal Survey of Youth and the Canadian Labour Market Activity Survey shows differences in both incidence and duration give rise to the mid-1980 US-Canadian nonemployment rate gap of young, low skilled males. Canadians are more likely to experience a...