Indeed, more people in the United States are falling behind today because of the laziness to pursue higher education. According to Autor, the dramatic increase in the premium is closely associated with higher education. The earning premiums for those individuals that pursue higher education have increased across several advanced countries in the past decade and this rise has substantially contributed to the net increase of earning inequality. For instance, in the US approximately two-thirds of the total increase of earning dispersion between 1980 and 2005 is attributed by the increased premium that relates to schooling in general and posts secondary school in particular.
Proposition two indicates that earnings inequality has increased in the United States as a result of purposeful policy changes. In the last part of Autor’s article, Autor supports this proposition by stating that numerous options can be utilized to assist inequality in the short term. The options that assist inequality in the short term include applying well-crafted labor regulations that provide safe and non-exploitative working conditions, applying continuous tax as well as transfer policies that can fund public investments and further foster opportunities for children of all socioeconomic background.
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Apart from facilitating opportunities for children, the options of short term inequality also include providing wage subsidies such as Earned Income Tax Credit that escalate the payoff to employment for those with limited skills while setting modest but nonzero minimum wage rules that provide numerous social insurance policies. The options indicated in David Autor’s article are in favor of people with lower income and individuals with no education and seem to combat with the current policies that favor more wealthy and educated individuals.
The first proposition is the proposition that I found credible. The article written by Autor has immensely changed my thinking about how income inequality has been rising since the 1970s. From this article, it is clear that the supply and demand of skills are the significant factors that are shaping this inequality. Apart from skills, the steep rise in international competition from developing world, the enactment of reductions in marginal tax rates as well as the declining bargaining power of US labor unions have also magnified inequality and further eroded real wages among the less educated workers.
References
David, H. (2014). Skills, education, and the rise of earnings inequality among the" other 99 percent"
