Cunha, Flavio; Heckman, James J. - National Bureau of Economic Research (NBER) - 2007
A large empirical literature documents a rise in wage inequality in the American economy. It is silent on whether the … increase in inequality is due to greater heterogeneity in the components of earnings that are predictable by agents or whether … in the variance of returns to schooling is due to increased uncertainty. Using conventional measures of income inequality …