I document a disparity in the cyclicality of allocative wages across levels of educational attainment, using data from the National Longitudinal Survey of Youth (1979). Specifically, workers with college or more exhibit allocative wages that are highly procyclical while high school dropout’s wages exhibit no statistically discernible cyclical pattern. I also assess the response to monetary policy shocks of both employment and wages to across education groups. Low skilled respond to monetary policy contractions on the employment margin while high skilled respond on the wage margin. I embed my findings in a medium scale DSGE model and show that the augmented model is consistent with the remaining facts. An important takeaway: conventional monetary policy easing reduces employment inequality.