Wage inequality is the unfair distribution of income among the different participants in the economy. It's very common in many economies where only a few percentage of the citizens are incredibly wealthy, and others are destitutes. The gap between the poor and the rich is very broad. There have been different explanations to this. David H. Autor carries out analysis in an attempt to determine the appropriate reason for the gap. In the article, David claims that the need for better and more skilled workers led to advancement in education thus more pay. This created a gap between the low earners and the highly paid hence increasing the gap between the poor and the rich (Leandro). The demand for more skilled labour has disadvantaged the non-skilled leading to the difference in pay. The advancement in use of computers has also contributed to the difference because the computer literates wages has been increasing each year. Employer need the more skilled labour so as to produce high-quality products which are competitive in the rising markets economies
According to David, the difference in wage was brought about by some factors which led to the gap widening every time. As the gap widens, it produces the divergence between the poor and the rich in the economy. David recommends some ways in which the situation can be handled in an attempt to reduce the gap. According to the propositions mentioned it's evident that there had been policies that have been benefiting the wealthy at the price of the poor (Elhanan). As much as the poor may try to catch up, it may not be possible for them. For instance, in the education system, the rich get to learn from better schools which offer a quality education which they later get better jobs which give better pay. On the other hand, the underprivileged get substandard teaching and land to low paying jobs. David recommends that the government should provide a quality equation to everyone and have policies that don't favour only the rich.
Works Cited
Elia, Leandro. "Temporary/Permanent Workers' Wage Gap: A Brand-new Form of Wage Inequality?" LABOUR, vol. 24, no. 2, 7 Aug. 2010, pp. 178-200.
Helpman, Elhanan. "Globalization and Wage Inequality." 29 June 2016.
