The growth of income inequality is now recognized to be one of the most important developments in employment relations.
On the one hand, some people believe that efficiency and equity are underlying objectives for work and employment relationships. While fairness is difficult to reduce to specific standards, various evidences show the majority of the population find the current income distribution as unacceptable even while underestimating the true magnitudes of differentials that exist.
On the other hand, a burst of new technology causes a rise in the demand of high level work, which in turn leads to a rise in earnings inequality, especially professional sports and entertainment. This rise in inequality occurs through demand for highly professional and skilled people who are needed to fill more technologically advanced works yet who are in short supply; and by the displacement of lower- and middle-skilled people who intensify competition for lower-wage works.
However, both of the two views are still lacking the essential factor which is the overall revenue of business. It is impossible to raise up the wage while the revenue, in general, was lower than the expected salary pool. Sport clubs or entertainment companies usually have extremely high revenue since they attracted a huge number of spectators who are willing to pay for tickets, kits, souvenirs together with massive income from advertisement contracts. Others, such as hospitals or industrial factories may also have high revenue as well, but need to split the result of business to multiple positions and prioritize to the high-level and professional jobs whose cannot be replaced.
Overall, it would be a challenge for balancing the wages between different positions and fields.
The growth of income inequality is
now
recognized to be one of the most
important
developments in employment relations.
On the one hand,
some
people
believe that efficiency and equity are underlying objectives for work and employment relationships. While fairness is difficult to
reduce
to specific standards, various evidences
show
the majority of the population find the
current
income distribution as unacceptable even while underestimating the true magnitudes of differentials that exist.
On the other hand
, a burst of new technology causes a rise in the demand of high level work, which in turn leads to a rise in earnings inequality,
especially
professional sports and entertainment. This rise in inequality occurs through demand for
highly
professional and skilled
people
who
are needed
to fill more
technologically
advanced works
yet
who
are in short supply; and by the displacement of lower- and middle-skilled
people
who
intensify competition for lower-wage works.
However
, both of the two views are
still
lacking the essential factor which is the
overall
revenue
of business. It is impossible to raise up the wage while the
revenue
,
in general
, was lower than the
expected
salary pool. Sport clubs or entertainment
companies
usually
have
extremely
high
revenue
since they attracted a huge number of spectators
who
are willing to pay for tickets, kits, souvenirs together with massive income from advertisement contracts. Others, such as hospitals or industrial factories may
also
have high
revenue
as well
,
but
need to split the result of business to multiple positions and prioritize to the high-level and professional jobs whose cannot
be replaced
.
Overall
, it would be a challenge for balancing the wages between
different
positions and fields.