In recent decades, the US wage structure has been transformed by a rising college premium, a narrowing gender gap, and increasing wage volatility. This paper explores the implications of these changes for cross-sectional inequality in hours worked, earnings and consumption, and for welfare. The framework of analysis is an incomplete-markets overlapping-generations model in which individuals choose education and form households, and households choose consumption and intra-family time allocation. An explicit production technology determines prices for labor inputs differentiated by gender and education. The model is parameterized using micro data from the PSID, the CPS, and the CEX. With the changing wage structure as the primitive force, the model can account for the key trends in cross-sectional US data. The rise in uninsurable wage risk implies sizeable welfare losses, but overall the more unequal wage structure increases average welfare. Welfare gains reflect individuals taking advantage of the higher college premium and the smaller gender gap by increasing educational attainment and dividing market work more evenly within the household.