Industry Research Part III - Essay Example

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The author emphasizes that difference in the real wage between skilled and unskilled workers has become smaller than the nominal. The article relates to a broad range of explanation for the…
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Industry Research Part III
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Axia College Material Appendix B (Part III) Annotated Bibliography Week Three Article One: Real Wage Inequality Article or Web site reference in APA format:
Moretti E (2008), Real Wage Inequality, Social Science Research Network,
September 2008, University of California, Berkeley - Department of Economics, Retrieved from
Summary of Article or Web site:
This article presents that wage inequality has become a growing challenge on our economy. The author emphasizes that difference in the real wage between skilled and unskilled workers has become smaller than the nominal. The article relates to a broad range of explanation for the increase in inequality. There was an increase in the relative demand for skilled labors and this caused skill biased technical change.
The author illustrates that the college graduates move to cities, where housing costs are high, due to an increased demand for skilled labor in cities and this increase can be due to skill biased technical change or positive trends to the product demand. This paper, written by Enrico Moretti, is a very good source for analyzing and researching what factors led wage inequalities to grow in many countries in recent years.
Article Two:
Article or Web site reference:
Dewan S (2008), Wage Inequality Is a Global Challenge, Centre For American Progress,
November 26, 2008, Rerieved from
Summary of Article or Web site:
The housing market faces challenges unparalleled in the history. Wage inequality is another threat on the economy that seems to claims more victim day by day. This article argues that declining wages and wage inequality around the world present two different problems. The high levels of inequality can definitely lead to adverse social, economic and political troubles that would bring insecurity and unrest. The second is that, global purchasing power will be decreased due to declining wages and it may cause a decline in the global consumption. The severity of wage inequalities and its impacts on all our spheres have been well detailed in this article.
Questions from syllabus
Current events related to wage inequality
According to the report published by International Labor Office, there are severe wage inequalities that lead to unemployment for workers in 83 countries around the world. (Dewan S, 2008). It means, the wage inequality raises issue to the 70% of world population. According to the research, the US is one of the developed countries where the difference between highest wages and lowest wages has grown more rapidly.
How to determine Wage Inequality
Wage inequality is referred to the difference between wages of skilled and unskilled labors. The increase in wages inequality can be measured by using nominal wages. The wage difference between skilled and unskilled labors is significant in determining inequality. In the US, it is a known fact that, due to increased demand for skilled labors in cities, skilled labors have moved to metropolitan cities where housing costs are higher. The average daily expenses also get higher. As has been discussed by Moretti (2008), skilled labors are exposed to high cost living. At the same time, it shows that a relative increase in their real wage may be smaller than the relative increase in their nominal wage. Read More
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