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The Complete Idiot's Guide to Economics, 2nd Edition by Tom Gorman

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Why Incomes Are Becoming More Unequal

Incomes have become more unequal in the United States for three primary reasons:
• Changes in employment patterns
• Increased returns to education
• Changes in households
Let’s take a look at each of these reasons.

Changes in Employment Patterns

As we discussed in Chapter 9, the percentage of workers who belong to a labor union decreased dramatically in the past 40 years. That in itself results in a lower wage for millions of workers, because unions exist to push wages upward, and they usually succeed.
As a result, however, management often moves jobs to lower-wage locations. Many high-paying U.S. manufacturing jobs have been replaced by lower-paying jobs in service industries, such as retail and restaurants. ...

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