Question

Explain reasons why the inequality gap between educated and less-educated workers has been widening

Answer 1

Due to disparities in education, gender , ethnicity, region and/or other factors, income inequality exists in every society or country. It may influence a society in many different ways, including the economy , education, crime, and life expectancy and health.

Education is arguably one of the key causes of income inequality. Recent studies show that the earnings gap has been widening between staff with a Bachelor's or more advanced degree and those with a high school diploma. And the widening income gap is said to have a negative effect on higher education. As those uneducated employees get poorer, they have trouble sending their kids to college.

Since the late 1970s the difference in income or earnings disparity between the Bachelor's or higher degree employees and the non-degree workforce has increased. The basic supply-demand relationship should clarify the discrepancy. Some economists believe that the demand from businesses for more trained and qualified workers has risen as society has advanced in technology, whereas the supply of more educated workers has stagnated or even fallen. Consequently, there is a shortage of skilled jobs, and the earnings gap between educated and uneducated jobs has increased.

The supply curve of this group will move to the right as there is an rise in college-educated workers (more college-educated workers are supplied) and the supply curve of high school diploma workers will change to the left (less non-educated workers are supplied). And the difference between them in earnings can be reduced.

Income inequality was a hot topic in many countries whether developed or emerging. Our discussion shows that education has also led to income inequality, and that the gap between educated and uneducated workers has increased as society has advanced in technology, thus employers tend to recruit more educated employees. And the need for them was not fulfilled by the availability of trained workers. Income disparity created by educational disparities can be minimized if more college graduates or more advanced degrees can be delivered by conventional and online institutions of higher education.