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Family Structure Changes

The growth of single-parent families and two-career high-earner couples contributes to income inequality.

Income Inequality

Refers to the unequal distribution of income across households, which has risen in recent decades.

High-Skilled vs

Earnings for high-skilled labor have increased relative to low-skilled labor since the late 1970s.

Winner-Take-All Labor Markets

Markets where a few individuals earn significantly more due to global demand for top talent in various fields.

Salary Disparity

The gap in earnings between the median worker and the top 1 percent is not solely due to educational differences.

College Degree Earnings

Workers with a four-year college degree earned 1.67 times more than high school graduates in 2010.

Supply and Demand Model

Economists use this model to analyze the causes of shifts in wage distribution.

Increase in College Graduates

The number of four-year bachelor’s degrees conferred in the U.S. increased from 840,000 in 1970 to nearly 1.9 million in 2013-2014.

Equilibrium Wage

The balance point where the supply of high-skilled labor meets demand, affecting wage levels.

Shift in Supply and Demand

An increase in both the supply of college-educated workers and demand for high-skilled labor leads to higher wages.