PT - JOURNAL ARTICLE AU - Bacolod, Marigee P. AU - Blum, Bernardo S. TI - Two Sides of the Same Coin AID - 10.3368/jhr.45.1.197 DP - 2010 Jan 01 TA - Journal of Human Resources PG - 197--242 VI - 45 IP - 1 4099 - http://jhr.uwpress.org/content/45/1/197.short 4100 - http://jhr.uwpress.org/content/45/1/197.full SO - J Hum Resour2010 Jan 01; 45 AB - We show that the narrowing gender gap and the growth in earnings inequality are consistent with a simple model in which skills are heterogeneous, and the growth in skill prices has been particularly strong for skills with which women are well endowed. Empirical analysis of DOT, CPS, and NLSY79 data finds evidence to support this model. A large increase in the prices of cognitive and people skills—skills with which women are well endowed—and a decline in the price of motor skills account for up to 40 percent of the rising inequality and 20 percent of the narrowing gender gap.