RT Journal Article SR Electronic T1 Two Sides of the Same Coin JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 197 OP 242 DO 10.3368/jhr.45.1.197 VO 45 IS 1 A1 Bacolod, Marigee P. A1 Blum, Bernardo S. YR 2010 UL http://jhr.uwpress.org/content/45/1/197.abstract 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.