Title: Causes of income inequality in the United States - Wikipedia
Headings: Causes of income inequality in the United States
Causes of income inequality in the United States
Main article: Income inequality in the United States
Contents
Divergence of productivity and compensation
Overall
Analyzing the gap
Reasons for the gap
Market factors
Globalization
Superstar hypothesis
Education
Skill-biased technological change
Race and gender disparities
Incentives
Stock buybacks
Tax and transfer policies
Background
Income taxes
Taxes on capital
Other tax policies
Debate over effects of tax policies
Transfer payments
Tax expenditures
Other causes
Shifts in political power
Decline of unions
Political parties and presidents
Non-party political action
Immigration
Wage theft
Corporatism
Neoliberalism
See also
References
Further reading
External links

Content: Market factors
Globalization
Change in real income between 1988 and 2008 at various income percentiles of global income distribution. The bar chart compares pre-tax income shares of the top 1% in 13 developed countries for 1980 and 2000. The degree of change varied significantly, indicating country-specific policy factors also impact inequality. Globalization refers to the integration of economies in terms of trade, information, and jobs. Innovations in supply chain management enabled goods to be sourced in Asia and shipped to the United States less expensively than in the past. This integration of economies, particularly with the U.S. and Asia, had dramatic impacts on income inequality globally. Economist Branko Milanovic analyzed global income inequality, comparing 1988 and 2008. His analysis indicated that the global top 1% and the middle classes of the emerging economies (e.g., China, India, Indonesia, Brazil and Egypt) were the main winners of globalization during that time. The real (inflation adjusted) income of the global top 1% increased approximately 60%, while the middle classes of the emerging economies (those around the 50th percentile of the global income distribution in 1988) rose 70–80%. For example, in 2000, 5 million Chinese households earned between $11,500 and $43,000 in 2016 dollars.