Causes Of Income Inequality

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First, the cause of Income Inequality is Global trend changed. Over the past forty years, the costs of transportation has reduced by because of improvement of technology, automation, and communication dramatically. New markets have opened, bringing growth opportunities in countries rich and poor alike, and hundreds of millions of people have been categories out from poverty. However, inequality has also risen. So, this has showed that the globalization has play a very important role in affecting the income inequality in this global.
Next, Technological changes rapidly and categories between labour. Due to the rapid growth of technology, the distance of income inequalities become far and far. New information technology has led to improvements in productivity and well-being by leaps and bounds, but has also played a central role in driving up the skill premium, resulting in increased labour income inequality. High skilled labour and skilled-labour able to generate higher income than the low-skilled or unskilled labour. This is because technological changes can disproportionately raise the demand for capital and skilled labour over low-skilled and unskilled labour by eliminating many jobs through automation or upgrading the skill level required to attain or keep those jobs (Card and Dinardo 2002; Acemoglu 1998). Because of technological advances, there have been found that technological change has contribute the most to rising income inequality.
In addition, Financial

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