Title: Income Inequality and the Earnings Gap Between Educated and Non-Educated Workers | UAGC
Headings: Income Inequality and the Earnings Gap Between Educated and Non-Educated Workers
Income Inequality and the Earnings Gap Between Educated and Non-Educated Workers
How Does Income Inequality Affect the Economy?
Why Has the Income Inequality Gap Between Educated and Non-Educated Workers Been Widening?
Can More or Better Education Reduce Income Inequality?
Conclusion

Content: As we see clearly, the earnings gap between Bachelor’s or higher degree workers and high school diploma workers has been widening since the late 1970s. Some economists claim that if our society produces more college-graduating workers, income inequality can be reduced. According to Carnevale and Rose, the income inequality would decline if 20 million postsecondary-educated workers were added to the workforce (p. 8). When there is an increase in college-educated workers, the supply curve of this group will shift to the right (more college-educated workers are supplied) and the supply curve of the high school diploma workers will shift to the left (fewer non-educated workers are supplied). Then, the earnings gap between them may be reduced. Hershbein, Kearney, and Summers simulated the effects of increasing the college attainment of working-age men. Their simulation results show a positive effect on average earnings and chances of being employed but no significant effect on overall earnings inequality (2015). Yet, their results demonstrate that an increase in educational attainment will reduce inequality in the bottom half of the earnings distribution (2015). Conclusion
Income inequality has been a hot issue in many countries whether they are developed or developing countries. Our discussion presents that education also has been contributing to income inequality and that the gap has been widening between the educated and non-educated workers as society has advanced in technology and thus employers want to hire more educated workers.