The rising wage inequality in U.S. urban labor markets during the 1980s was examined in a study of 20 metropolitan area labor markets. The study's perspective differs from the prevailing perspective on the problem in three ways: (1) it focuses on changes in the wage structure in a sample of local labor markets; (2) it examines changes in the structure of wages paid for specific jobs; and (3) it focuses on jobs and skills required as the primary determinants of wages. The identified changes in local wage structures over time were generally similar to those found in earlier studies of national data. Changes in benefit coverage were not as extensive as changes in wage rates and appeared closely related to union contract coverage. Returns on skills had generally increased; however, the results varied considerably for training, job level, cognitive skills, and machine-related skills. Both between and within occupational groups, changes in wage inequality appeared closely related to the role of labor market forces, union contract coverage, and the real minimum wage. (Appended are the following: list of data sources and definitions of the study metropolitan areas; wage distribution data; and unemployment rates. Thirty-one tables/figures are included. The bibliography contains 111 references.) (MN)