Labor economists consider an increase in demand for skill the most important reason for growing inequality.

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Labor economists have identified an increase in demand for skill as one of the primary drivers of growing income inequality. As technological innovations continue to transform the economy and increase the importance of specialized skills, workers with higher education levels and technical abilities are more likely to see their wages rise. At the same time, lower-skilled workers may struggle to find well-paying jobs, leading to widening income disparities between high and low earners. Other factors, such as changes in unionization rates, globalization, and tax policies, may also contribute to rising inequality, but many economists consider the skills gap to be the primary driver.

Labor Economists Consider an Increase in Demand for Skill the Most