I’m Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at explanations for rising income inequality. Mike, the growing gap in income between higher paid and lower paid workers is a big issue in our country. The issue has received much attention from scholars, and I understand there is a new study taking a fresh look at income inequality. What are the findings?
- Talks of an old and new explanation
- Old explanation – declining factory jobs – did pay well for non-college grads – due to work with expensive machinery
- New explanation – higher income college grads have seen their pay rise, but earning have also risen because they have increased their hours of work
- So are paid more per hour, but also are working more hours
- Both explanations are being pushed by economic trends – hard to turn around
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.