Explaining levels of within-group wage inequality in US labor markets

Most research on earnings inequality has focused on the growing gap between workers of different races and at different education, age, and income lev els but a large portion of the increasing inequality has actually occurred within these groups. This article focuses on the extent and sources of "wit hin-group" wage inequality in more than 500 labor markers in the United Sta rts in 1990. In addition to documenting that within-group wage inequality a cross regions varies more widely today than over the past several decades, the analysis reveals that two frequently, cited explanations of rising wage inequality over time have little impact on within-group wage inequality wh en measured at the local labor market level: (I) industrial shifts and (2) increased technology and trade. By contrast, flexible and insecure employme nt conditions (e.g., unemployment, contingent work, and immigration) are as sociated strongly with high local levels of within-group wage inequality, e specially among women.