Skills, Education, and the Rise of Earnings Inequality, Essay Example

There isa certain factor of that inequality serves within a society,and is especially related in creating a mobilized system of modern economy. In Autor’s article, there is made mention the fact that skills may be of the highest demand among laborers at present. However, the pay grade realized by the ones who are noted for such skills, do not necessarily pay the highest wages, or even be among those jobs which garner the highest concern among those organizations they are working for. This is most evident, across any spectrum, in the disparity between the earnings of college and high school graduates. To say that this inequality is new to any debate, is to ignore the fact that not only has this phenomena been around for quite some time, but also that the notion of some interlapping of wages helps to create upward mobility, which is vital in any healthy economy(Autor).

This central theme of skills and pay inequality, the foundation of the 99% movement, ought to be focused on the vehicle that a pay gap creates, and what a free economy is prized for, which is the ability for upward mobility. If there are three reasons for the disparity, they begin and end there, with the concept and hope for an opportunity of upward mobility, that is to say that one can expect, especially if post-secondary education has been completed, to continually earn more as his or her career moves forward. This is supported by 3 points of contention, or rather, 3 points of consideration.

First, in the number of advanced countries over the last decade have experienced a jump in growth and in earnings. Secondly, in spite of a complete agreement between officials as to why and how an income gap has come to exist in these countries, all agree that the difference between “college and high school graduates has more than doubled in the United States over the last three decades”(Autor 843). This is significant, for if the gap has grown three fold in the U.S., one might imagine the gap that has come to pass worldwide. Third, and perhaps most importantly, the reason that this gap is so important, and so contentious in nature is that it points out exactly the unfairness, and the opportunity, which is necessarily tied to a free economy(Autor).

The question then becomes, if a free market is what is desired, are all involved willing to accept the consequences which come with a free market/economy. The main benefit that of upward mobility, has been established. However, as the name of the article suggests, the main complaint, within a free market, is that of patent unfairness, particularly among those who are the least educated. Quite simply, there cannot be one without the other as both are necessary for the survival of the free economic model. As Autor points out, a “market needs some inequality to create incentives”(Autor 848). If everyone were to be suddenly equal, that would be a nice gesture. However, what would the sentiment be, among those who had or were achieving higher education and with it, greater skills; only to learn that they must remain contented, and treated equally, and fairly, with the rest of the populace? In short, the incentive for excellence has been removed by the act of injecting fairness into the market. As Autor mentions, the very presence of inequality, of a vacuum near the top which must be filled, creates the drive and impetus for change, and this is what drives the economy. The money and/or wages are only a symbol, but what they represent is the engine, which is inequality, of a free economy.

The solution for this, that is to say for many if not a great many, to become competitive, is not an overnight process. Indeed, the process of that sort of change is one of a generational nature, and occurs slowly, and with great purpose. In conclusion, it must be noted that everything is constantly at change, and that nothing worthwhile remains static. With that said, so too is the case with the economy and supply and demand, with skills, or lack thereof. If all are given an opportunity for higher education, in time they will be compelled to achieve that, and will naturally begin an ascension toward the upper regions of the 99%(Autor). While very few may reach the fabled 1%, the engine of growth and market driven supply and demand, coupled with increased skill and/or education, will necessarily also add more success, and less disparity, to world’s economy and markets.

Works Cited

Autor, David H. “Skills, education, and the rise of earnings inequality among the “other 99%”.” Science (2014): 843-851. Web.DOI: 10.1126/science.1251868.