Sandén, Klas2007-09-102007-09-102007-09-101403-2465http://hdl.handle.net/2077/4754This essay presents a new theory explaining increased wage inequality. A standard endogenous growth model is augmented with occupational choice of highskill workers. Depending on the occupational choice, high-skill workers earn either a certain or uncertain income. Wage inequality, measured by the average wage of high-skill workers divided by the average wage of low-skill workers, can increase or decrease due to an increased supply of high-skill workers.engDistributionWagesCooperativesTechnological ChangeEconomic GrowthJEL: D33, J31, J54, O32, O41Text