Question

1. A, B, C. Relative income inequality among US workers is greater today than during the 1980s. Separately answering as parts A, B, and C, give and explain three separate causes of increasing labor income inequality. Along with each answer, include the changes that give the source of each cause that you give, as well.

Answer 1

Income Inequality among worker:- Income inequality is the disparity of income distributions. When income inequality appears, there is a large gap between the wealth of one population segment compared to another.
Causes of increasing labour income inequality:-
Income inequality has been increased in the United States over the past 30 years. The three parts explain the difficulty of pinning down causes of inequality.
Part-A => The first cause is technology and education argument the most prominent. The demand for skilled workers has consistently increased, but skill not being supplied at a rate to keep up with demand.
Part-B => The second cause is trade and globalization. The growing trade between the United States and especially China has increased the number of imports in the US economy, which has create job loss in industries.
Part-C => The third cause is that US government policies created income inequality. The deregulation, de-unionization, tax changes, federal monetary policies and other policies created income inequality in US.