Researchers are trying to identify the causes of rising income inequality in various economies.Important forces that are almost certainly contributing are:
1)globalization
2)rising rates of personal income tax
3)skill-biased technological change

Question

Quizplus · Accepted Answer

Globalization has led to the outsourcing of jobs to countries with lower labor costs, leading to increased competition for jobs and lower wages for workers in developed countries. This has contributed to rising income inequality. Skill-biased technological change has increased the demand for highly skilled workers, leading to higher wages for those with specialized skills and education, and lower wages for workers in less-skilled jobs. This too has contributed to rising income inequality. There is no evidence to suggest that rising rates of personal income tax have contributed to rising income inequality.

Researchers Are Trying to Identify the Causes of Rising Income