Economic inequality has been an important feature of the developed economies since the 1970s. Thus understanding the determinants and consequences of economic inequality is central to macroeconomics. This thesis consists of three chapters, each of which focuses on a different aspect of...

This thesis consists of three chapters, each of which focuses on different aspects of economic inequality.First, we investigate the differences in wage inequality between the United States and continental European countries (CEU). Wage inequality has been significantly higher in the US compared...