In many developed economies, a widening gap between productivity growth and median wage growth has led to a significant rise in income inequality. Over the past few decades, the share of national income captured by the top 10% of households has risen from approximately 25% to nearly 40%, while the share received by the poorest 20% of households has fallen.
Explain one likely reason for this rise in income inequality within developed economies.
16 exam-style questions on Edexcel A A Level Economics 4.2.2 Inequality. Each one has a worked solution and a mark scheme showing where the marks go.