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I develop a general equilibrium model featuring multidimensional skills
and partial specialization in tasks to quantify the impact of several determinants
on within-occupation inequality growth from 1980 to 2000. The
model introduces a new mechanism by which demand shifts affect inequality:
workers within the same occupation perform multiple and different tasks. I
structurally estimate the model using microdata, and account for inequality
growth due to three sources: changes in occupation demand, changes
in the task content of occupations, and changes in labor composition. My
findings indicate that changes in task content explain the majority of within-occupation
inequality growth.
