Question

How does the income distribution in the United States compare with the income distribution in other nations? 9b. Examine, the degree of income inequality in our nation. 9c. Explain, why the gap in earnings between skilled and unskilled workers is growing in the United States.

Answer 1

If we look at the structure of the distribution of income in the Americas across Europe, we can see that income inequality exists in both countries. We also find that income distribution inequality increases in the United States more than in European countries. Between 1980 and 2016, income distribution inequalities could be seen everywhere in the world. But in the US, this is much higher. Half of the poorest Americans now hold less than 14 percent of income, while the top 1 percent now owns a percentage of total income equal to 20 percent of the 1980 population. Although inequality is increasing in Europe and America, its speed is different. The United States is second position than China of income inequality. Income distribution inequality in the United States is much higher than in other countries.

According to economist Emmanuel Saez, the gap is big in comparison to the divide between the nation's top 0.1 percent and everyone else. inequality is very clear. The top 10% in the US now uses an average of 9 times more revenue than the bottom 90%. Black and white income inequality in the US continues to rise. This difference has grown from about $ 23800 in 1970 to about $ 33,000 in 2018.

The demand for skilled labor in America is more inelastic than the demand for skilled labor.The supply ofskilled labor is greater than the supply ofskilled labor . Skilled workers receive better pay and benefits than unskilled workers. The unskilled worker receives a lower salary and benefits than the skilled worker. This is the difference with respect to productivity