Título: "On the cyclicality of wage inequality in the U.S."

Abstract:  We investigate whether wage inequality in the U.S. is dependent on business cycle fluctuations. The existing literature has shown that wage inequality is acyclical. We show that this is true on average but the cyclicality has changed substantially over time. By allowing for time-variation in the relationship between wage inequality and macroeconomic conditions, we find that wage inequality was highly procyclical in 1988- 1993 and at the onset of the Great Recession, while it was strongly counter-cyclical in late 1990s and during 2014-2017. On average, the correlation between the cycle of GDP and that of wage inequality is close to zero, but this average masks heterogeneous dynamics. We then investigate possible explanations for the change in cyclicality over time.