Title: Factors that explain wage inequality - Economics Help
Headings: Factors that explain wage inequality
Factors that explain wage inequality
Brief overview of wage inequality
Factors that explain wage inequality
To what extent does MRP theory determine wages?
3. Monopsony
Sources of monopsony power and wage inequality
4. Part-time / temporary work
5. Wage inequality due to hours worked / rather than wage rates
6. Discrimination
7. Geographical differences
8. Insider/outsider theories
9. Profitability of different industries
Reasons for growth in wage inequality in past decades
Related

Content: 9. Profitability of different industries
Some industries, such as financial services have traditionally been able to make higher profits; this feeds through into higher wages, especially when pay/bonuses are linked to performance. The past couple of decades has seen rapid growth in the net wage of high-income earners; this is partly related to the relative success of financial services. 10. Globalisation/trade liberalisation Trade liberalisation has led to a shift in the structure of the economy. It is cheaper to import labour-intensive goods from emerging economies. This leads to lower demand for unskilled workers in the West. It leads to higher demand for skilled workers in industries with comparative advantage.