Since 1973, average real wages in the United States have stagnated while earnings inequality has increased. Real wages and employment of unskilled workers in manufacturing have also declined sharply. Real wages have continued to rise in Europe, where labor markets are less flexible, but unemployment has increased and become more persistent, especially among the less-skilled. The principal objective of this group has been to enrich the policy debate regarding international trade and wage levels. The discussions have focused on four areas: (a) the evaluation of changing distribution of income across countries; (b) the investigation of the impact of trade on wages and employment within countries; (c) the evaluation of the role of non-trade factors (i.e. the surge in foreign direct investment flows, the global diffusion of technology, and immigration from developing countries); and (d) the consideration of possible remedies for workers faced with retrenchment, job insecurity, a! nd stagnant incomes. Speakers at this group have included, among others, Richard Freeman, distinguished labor economist, and Lisa Lynch, former chief economist at the US Department of Labor.