This paper presents an overview of the changes in wage inequality in industrialized countries. The paper first presents a number of stylized facts about the evolution of wage inequality in Canada, the United States, and the large European economies. A key pattern that comes out of the data is...

This paper develops an econometric model of the decision to work in one or two different occupations when wages depend on hours of work. The model is identified using a basic principle of demand theory with rationing constraints which does not require standard exclusion restrictions. The...