page_title: Causes of income inequality in the United States
section_title: Divergence of productivity and compensation
hierarchical_section_title: Causes of income inequality in the United States / Divergence of productivity and compensation
caption_attribution_description: English: Illustrates the productivity gap (i.e., the annual growth rate in productivity minus annual growth rate in compensation) by industry from 1985-2015. Each dot is an industry; dots above the line have a productivity gap (i.e., productivity growth has exceeded compensation growth), those below the line do not.
context_page_description: Causes of income inequality in the United States describes the reasons for the unequal distribution of income in the US and the factors that cause it to change over time. This topic is subject to extensive ongoing research, media attention, and political interest.
  Income inequality in the United States grew significantly beginning in the early 1970s, after several decades of stability. The US consistently exhibits higher rates of income inequality than most developed nations, arguably due to the nation's relatively less regulated markets.
  According to the Congressional Budget Office, "the precise reasons for the [recent] rapid growth in income at the top are not well understood", but "in all likelihood," an "interaction of multiple factors" was involved. Researchers have offered several potential rationales. Various rationales conflict or overlap. They include:
  globalization – Lesser-skilled American workers have been losing ground in the face of competition from workers in Asia and other emerging economies.
  skills – The rapid pace of progress in information technology has increased the relative demand for higher-skilled workers.
caption: Illustrates the productivity gap (i.e., the annual growth rate in productivity minus annual growth rate in compensation) by industry from 1985–2015.  Each dot is an industry; dots above the line have a productivity gap (i.e., productivity growth has exceeded compensation growth), those below the line do not.[20]
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