Introduction
Income inequality is the uneven distribution of income among people or households. Economists, politicians, and social scientists have focused on it as it has grown in many wealthy and developing nations. Income disparity has several factors, which vary by circumstance. Education, skills, and job experience may cause income disparity (Lee & Lee, 2018). Technological progress, globalization, and labor market changes may increase income disparity by producing winners and losers. Income disparity affects society regardless of its source. It may worsen social and economic divides, poverty, social exclusion, and social cohesiveness. Thus, many governments worldwide focus on income disparity to promote inclusive development and reduce poverty and inequality. Measures should be established to reduce income disparities while embracing technological changes, globalization, and labor market changes.
Technological changes
The utilization of technology has been a pivotal factor in influencing the economic terrain in recent decades. The advent of technological progress has yielded considerable advantages to the populace, yet it has concurrently played a role in the escalation of income disparity. This phenomenon is attributed to the impact of technological advancements on the labor market, whereby automated systems and machinery are substituting certain occupations. In contrast, others necessitate specialized knowledge and training. The current situation has led to an increasing disparity between individuals with the requisite competencies and qualifications to thrive in the contemporary economic landscape and those needing them.
Position 1: The impact of technological advancements on income inequality is a significant concern.
One contention posits that technological advancements have considerably exacerbated income inequality. Individuals with specialized technical expertise, including software engineers, data analysts, and robotics engineers, are currently experiencing significant demand and can negotiate competitive compensation packages (Eberhard et al., 2017). Simultaneously, occupations susceptible to automation, such as manufacturing, clerical duties, and certain types of service-oriented work, have been vanishing, resulting in many unemployed or employed in positions with meager remuneration. The phenomenon results in a scenario where individuals possessing appropriate competencies and academic qualifications are remunerated with lucrative employment opportunities (Lauder & Mayhew, 2020). The above phenomenon can potentially incite societal upheaval and compromise the general equilibrium.
Position 2: Implementing technological advancements yields benefits to the entirety of society.
An alternative perspective posits that the impact of technological advancements on society has been predominantly favorable and that the advantages surpass any adverse consequences on income distribution. The implementation of automation has resulted in increased accessibility of goods and services, while advancements in technology have yielded enhancements in healthcare, communication, transportation, and various other domains (Georgios et al., 2019). The phenomenon above has resulted in a high quality of life for numerous individuals, even those who lack the requisite expertise to secure lucrative employment opportunities engendered by technological advancements. In addition, novel employment opportunities have emerged in domains such as software engineering, data analytics, and online marketing, presenting prospects for individuals possessing the requisite expertise.
Globalization
The globalization of economies, civilizations, and cultures characterizes globalization. Globalization has improved commerce, investment, and cross-cultural interchange. Technology has also contributed to economic inequality, both domestically and internationally.
Position 1: Globalization is said to have caused and maintained economic inequalities.
Globalization has contributed to the widening socioeconomic disparity between the wealthy and the poor nationally and internationally. It can be argued that globalization has primarily benefited the privileged and influential segments of society, while the disadvantaged and vulnerable cohorts have borne the burden of its consequences. The assertion contends that globalization has facilitated the simplicity with which multinational corporations can circumvent taxes and regulatory frameworks, resulting in the concentration of wealth and power among the upper strata of society (Zhang, 2019). The phenomenon of globalization has created a competitive environment in which businesses endeavor to optimize profits by minimizing expenditures, resulting in a decline in compensation and labor standards.
Position 2: Globalization may reduce wealth disparities.
According to this viewpoint, globalization may boost economic development, particularly in developing nations. Increased trade and investment may create jobs and raise salaries, particularly in emerging countries with lower labor costs. Globalization may boost markets, technology, and information, making it simpler for individuals and enterprises to enhance productivity and competitiveness (Prasanna et al., 2019). Globalization also promotes cultural exchange and understanding, reducing inequalities and fostering societal harmony. Both options might benefit globalization.
Labor market changes
The enduring problem of income inequality has a pervasive impact on numerous societies across the globe, with alterations in the labor market representing a significant contributor to this phenomenon. Labor market changes pertain to alterations in the configuration and constitution of the labor market throughout a period, encompassing modifications in the allocation of jobs across industries, variations in the proficiency prerequisites of jobs, and progressions in technology that could potentially mechanize jobs. The alterations above carry important ramifications regarding the allocation of earnings and the degree of economic disparity.
Position 1: The alterations in the labor market can potentially intensify the existing income disparity.
From a particular viewpoint, alterations in the labor market have played a role in the expansion of the disparity in earnings between individuals with high and low incomes. Proponents of this stance contend that the proliferation of technology and globalization has engendered the emergence of novel, lucrative employment opportunities that necessitate sophisticated expertise and erudition. Consequently, individuals with comparatively lower education and skills need more employment prospects that remunerate inadequately, thereby exacerbating income disparities (Lawrence et al., 2017). Moreover, this stance posits that the waning influence of labor unions and their ability to collectively bargain has undermined the leverage of employees, resulting in a lack of growth in wages and a worsening of the unequal distribution of wealth, favoring a select few individuals with high incomes. The exacerbation of income inequality can be attributed to reduced government regulations on businesses and taxes for the wealthy. This policy benefits the already affluent and influential members of society while leaving those with lower incomes with fewer resources and opportunities.
Position 2: Alterations in the labor market have the potential to diminish income inequality.
An alternative viewpoint posits that alterations in the labor market can mitigate income inequality through the facilitation of educational and training opportunities and the provision of lucrative employment prospects. Advocates of this stance contend that alterations in the labor market can lead to new industries and employment prospects that necessitate specialized expertise and education, thereby generating novel avenues for upward socioeconomic advancement and financial progress (Comyn, 2018). In addition, technological progressions possess the capability to enhance efficiency, reduce the expenses of commodities and amenities, and establish novel enterprises that can advantage a wider populace (Malecki, 2018). Consequently, it may result in increased remuneration, enhanced productivity, and novel prospects for individuals possessing the requisite competencies and knowledge. This role highlights the potential for labor market transformations to be accompanied by measures aimed at mitigating income inequality, such as the implementation of progressive taxation, the expansion of educational opportunities, and the provision of safeguards for workers. The implementation of such policies can potentially alleviate the adverse effects of labor market fluctuations and promote a more equitable distribution of the advantages stemming from economic expansion.
Mediation
Policies that help those harmed by technology are one compromise. It might entail educating and retraining individuals whose occupations are in danger of automation and incentivizing corporations to do so. It would allow them to learn new skills and get jobs in burgeoning sectors (Georgios et al., 2019). Additionally, technological improvements should benefit society equally. It might entail enacting laws restricting wealth and power concentration and spreading the advantages of technological breakthroughs. Progressive taxation or a universal basic income might guarantee that those who cannot find high-paying employment in new sectors have a basic quality of life (Eberhard et al., 2017). Finally, technological advances may help reduce economic disparity. We can build an equal society that benefits everyone by supporting labor and sharing technological advances.
A reasonable resolution may entail recognizing the adverse impacts of globalization on underprivileged societies and enacting measures to redress these concerns. Possible academic rewrite: One potential strategy to mitigate the concentration of wealth among the elite is to implement measures to promote tax fairness and labor compliance by multinational corporations (Zhang, 2019). It has the potential to mitigate the economic inequalities resulting from globalization. Simultaneously, endeavors could be undertaken to advocate for the favorable facets of globalization, such as heightened commerce and capital infusion, that have the potential to engender economic expansion and employment opportunities. The proposed initiative entails extending assistance to small enterprises and innovators in emerging economies alongside fostering intercultural communication and comprehension (Prasanna et al., 2019).
One potential resolution that could reconcile the divergent stances is to recognize that modifications in the job market can amplify and alleviate disparities in earnings, contingent upon their administration and execution. Globalization and technological development have created new, lucrative career opportunities requiring specific training and expertise (Lawrence et al., 2017). However, it has also resulted in the outsourcing and automation of low-skilled occupations, limiting the employment options open to those with less education and training. Along with tax laws that benefit the wealthy, the decreasing influence of labor unions and government controls on businesses has contributed to the growth in income disparities. It is imperative to implement strategies that focus on enhancing educational and training prospects while guaranteeing the availability of protective measures for employees, such as regulations about minimum wage and labor norms (Comyn, 2018). Furthermore, adopting progressive taxation can mitigate the imbalanced dispersion of riches, which tends to benefit a privileged minority with substantial earnings and foster a fairer allocation of the benefits arising from economic growth. Nonetheless, it is imperative to recognize that achieving a harmonious implementation of said policies is essential so as not to impede the inventive and enterprising nature of the economy (Malecki, 2018). Worker protection measures and executing taxation policies that foster a fairer allocation of resources.
Conclusion
Income inequality is the uneven distribution of income among people or households. The utilization of technology has been a pivotal factor in influencing the economic terrain in recent decades. The advent of technological progress has yielded considerable advantages to the populace, yet it has concurrently played a role in the escalation of income disparity. Globalization has contributed to the widening socioeconomic disparity between the wealthy and the poor nationally and internationally. Globalization may boost markets, technology, and information, making it simpler for individuals and enterprises to enhance productivity and competitiveness. Alterations in the labor market have expanded the disparity in earnings between individuals with high and low incomes. Alterations in the labor market can lead to new industries and employment prospects that necessitate specialized expertise and education, thereby generating novel avenues for upward socioeconomic advancement and financial progress. Therefore, measures should be established to reduce income disparities while embracing technological changes, globalization and labour market changes.
References
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