Evaluating Theories on Income Polarization in the U.S.

Author

Jocelyn Anderson

Date of Award

4-2018

Document Type

Thesis

Department

Political Science

First Advisor

Dr. Patrick Donnay

Abstract

This paper examines the relationship between technological change and income polarization within the United States. I examine and discuss the reshaping of the U.S. labor market via skill- biased technological change, possible effects of globalization, as well as institutional policies. My research also explored how aspects of corporate structure norms, and tax avoidance could be causes for increased income polarization related to top tier incomes. Using current literature and data to consider the top causes of an increasingly widening wage gap, one can see that advancements in technology and the changes it has had on the labor market, as well as facilitating capital gains, have been driving factors to ongoing trends of uneven income distribution. Arguments regarding policy and deregulation are also very strong, as are factors relating to corporate structure. Within the structure of the corporate and finance world you see wages and the accumulation of capital at record highs. However, my research shows how both skill and capital-biased technological advancement has been the leading facilitator for much of the increasing polarization of U.S. wages. Technological change presents itself within every theory and is clearly a forerunner among them.

Recommended Citation

Anderson, Jocelyn, "Evaluating Theories on Income Polarization in the U.S." (2018). Political Science Theses and Capstones. 53.
https://pines.bemidjistate.edu/capstone-polisci/53