SOC 135 Lecture Notes - Economic Mobility, Market Power, Financialization
Document Summary
Income inequality in america has risen sharply in recent decades. Increases in product market size: changes in corporate governance and executive pay setting. Increases in the market power of large firms: financialization, soaring stock values, union decline, reductions in top tax rates. The second source is changes in household structure and employment. Contemporary american society: a second claim says that the rise in income inequality has been offset by a rise in mobility. Instead, the rise in inequality seems to have increased americans" support for programs perceived as boosting opportunity and economic security, such as education and health care. The main mechanism through which inequality affects growth is by undermining education opportunities for children from poor socio-economic backgrounds, lowering social mobility and hampering skills development. Sounding the alarm: that"s why organizations like the oecd, the international monetary fund and the world.
