According to Goldin and Katz, the increasing income inequality of recent decades is the result of:
A) increases in the rates of technological advance and educational attainment.
B) decreases in the rates of technological advance and educational attainment.
C) a steady pace of technological advance and a slowdown in educational advance.
D) a decrease in the rate of technological advance and an increase in the rate of educational advance.

Question

Quizplus · Accepted Answer

Goldin and Katz argue that the increasing income inequality is due to a steady pace of technological advancement combined with a slowdown in the rate of educational advancement. This creates a gap where the demand for skilled labor outpaces the supply, leading to higher wages for those with the necessary skills and education, and stagnating wages for those without.

According to Goldin and Katz, the Increasing Income Inequality of Recent