Other explanations:

The United States has one of the highest wage inequality rates among any OECD Country. Arguably this can be accounted for by the larger relative supply of low-skilled workers in the United States. However, it is also suggested to be accountable by the fact that in comparison to other OECD countries, the U.S. has very low levels of collective bargaining, unemployment insurance and job protection regulations, all of which can be seen to minimise the wage differential at the bottom end of the labour market, thus decreasing the wage differential at the bottom end of the labour marker, thus decreasing the wage inequality.

The United stated and many developed countries have ever decreasing union memvership. Unionisation reduces wage dispersion by on average 10% and evidence suggests that wage dispersion in union firms is about 25% lower than that of non-union firms. This is largely due to the fact that union workers are a a more homogenous group in terms of education and in other skill measures.⁽⁵⁾

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