Answer to Question #238241 in Microeconomics for Max

Question

Apart from the mismatches of supply and demand in the labour market, what other factors
are largely contributing to inequality levels within the country?

Answer 1

Inequality levels in a country are not entirely caused and measured by income, but there exist other factors such as; gender, disabilities, origin, sexual orientation, class, and ethnicity.

Gender.

Division of employment opportunities has created inequality. There has been a belief that men are far better in certain jobs than women.

 Technology.

Research has shown that advancement in technology has favored the most skilled workers as it tends to improve their relative positions in the workplace. This has widened the gap between them and the less skilled. The gap between the rich and the poor has also increased following the shifting of focus to advanced economies where automation is already established.