Mary: I’m Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at the outlook for income inequality. Mike, the concept of income inequality looks at how incomes of higher income households change relative to the incomes of lower income households. For much of the 21st century, richer households have had large income increases than incomes of poorer households. Will this trend continue?
Mike: Summary Answer
- Economists are divided
- One group says yes, jobs and incomes of higher educated and higher income households will continue to expand, but not so for lower income households
- But another group says, no -labor supply of lower income households may shrink, and cause their wages to rise
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics