This article takes advantage of new Canadian administrative linked employer-employee data to study the role of employers in explaining changes in inequality along two dimensions. First, we use information about the worker's employer to examine how within-firm and between-firm earning inequality evolved over the past decade. Second, we use firm-level productivity information to shed some light on the evolution of productivity inequality over the last decade. Finally, we interpret these findings in the light of current theories about increasing wage inequality and summarize how these results improve our understanding of the dynamics of productivity dispersion. More precisely, we link the changes in productivity inequality to changes in wage inequality to specifically address the question of how the two are closely connected or not.