Title: Globalization and Inequality: Sharing Wealth One of Greatest Challenges
Headings: Globalization and Inequality: Sharing Wealth One of Society’s Greatest Challenges
Globalization and Inequality: Sharing Wealth One of Society’s Greatest Challenges
Why is Inequality Increasing?
Changing Employment
Regional Inequality
William R. Hauk

Content: Two phenomena, also prominent in the last few decades, are typically cited: globalization and technological change. Why is Inequality Increasing? Globalization can increase wage inequality in a relatively rich country by increasing the imports of manufactured goods using predominantly low-skilled labor from developing countries. Conversely, it opens more opportunities for exports in high-tech firms that use more high-skilled labor. These two forces can widen the wage gap between high-skilled and low-skilled workers. Technological change can also potentially increase wage inequality. Fewer secretaries, typists, or assembly-line workers are needed if computers and automation replace them in the production process. Conversely, newer technology can increase the demand for the services of, say, engineers who can service those machines. While the two explanations are not mutually exclusive, for a long time, many economists tended to favor the technological explanation.