Income Inequality and Globalisation Assignment Example | Topics and Well Written Essays - 2750 words

Income Inequality and Globalisation - Assignment Example Over the past decades, many economists have been debating and claiming that increasing degree of trade relations between developed and developing countries can be identified as one of the major aspects which gave rise in income inequality. Furthermore, economists have also argued that trade relations practiced within nations in the current day context are highly influenced by globalization trends and thereby, globalization can also be addressed as a vital reason for income inequality (Freeman, 1995). Where on one hand, the advantages of globalization can be identified as reduced trade barriers and implementation of modern technologies; conversely, its disadvantages can be identified as inequality in payment of wages to workers being grouped as skilled and unskilled. To be illustrated, implementation of modern technologies can be observed to play a vital role in reducing the demand for the unskilled workers in the global platform which is further giving rise to income inequality amid different economies (Batterson & Weidenbaum, 2006). Recent studies (Atkinson, 2003; Alderson & Nielsen, 2002; Sala-i-Martin, 2002), based on the understanding of this particular issue in the current day context, have revealed that nations react in a distinct manner towards controlling income inequality, fundamentally depending upon their divergent social as well as economic features. For instance, the current trends have revealed that the US, as a developed nation is also facing the problem of income inequality which has further been recorded to augment with significant rapidity over the past few decades. This particular issue, within the context of US business environment, can further be illustrated with reference to the distribution of the organizational wages i.e. in accordance with the rising significance of higher level officials such as the Chief Executive Officers and skilled managers in comparison to the ground level laborers or front desk employees. It is worth mentioning in this context that the recent trends depict a contin uous increment in the wages paid to the skilled employees designated in the decision-making or managerial positions, but contradictorily, it also reveals that the low-skilled workers are receiving lesser wages at a stagnant rate.