ECON 1116 Lecture Notes - Lecture 11: Economic Mobility, Human Capital, Supplemental Security Income
5 Dec 2016
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Document Summary
Table 1 the distribution of income in the united states: 2000. Table 2 income inequality in the united states. A person"s earnings depend on the supply and demand for that person"s labor, which in turn depend on natural ability, human capital, compensating differentials, discrimination, and so on. If income were equally distributed across all families, each one-fifth of families would receive one-fifth (20 percent) of total income. From 1935-1970, the distribution of income gradually became more equal. In more recent years, this trend has reversed itself. Reasons for recent increase in income inequality. The following have tended to reduce the demand for unskilled labor and raise the demand. Copyright 2004 south-western for skilled labor: increases in international trade with low-wage countries, changes in technology. Therefore, the wages of unskilled workers have fallen relative to the wages of skilled workers. This has resulted in increased inequality in family incomes.
