about what is income inequality and why is bad. (regressions) • Economic growth and income inequality: the case of the US o “There is strong empirical evidence that rising inequality, as measured by the Gini index and the other three indicators, hinders economic growth.” • The Geography of Inequality: Difference and Determinants of Wage and Income Inequality across US Metros o “Inequality, according to a large literature, is the product of ‘skill-biased technical change’ (A U T O Ret al., 1998, 2003, 2006). The combination of globalization and the shift of manufacturing to lower wage countries like China, dubbed ‘the world’s factory’, new technologies of robotics and automation, and increases in productivity and efficiency have eliminated millions of formerly low-skill but high-paying jobs. GOLDINand KATZ (2008) document the relationship between technological change and increasing returns to education and skills as shaping growing inequality.
