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Polarization of Jobs
One of the primary factors causing wealth disparity is the diverging
opportunity to capture wealth. It is inherent in the corporate
structure that those at the top have more power to determine or
negotiate their generous pay level. The Economic Policy Institute
reported that over the past four decades, top corporate executive
compensation has grown by more than 1,000%. Some would claim
that the high level of pay is well-deserved as most compensations
link to the growth of shareholder value. But others would argue that
excessive compensation is a result of executive power and demand
instead of a true reflection of real contribution and capability.
Nevertheless, the growth of executive pay is almost 100 times the
rate of average employees’ pay, widening the prosperity gap.
Another factor is the varying abilities and skills to capture wealth. As
reported by the Organisation for Economic Co-Operation and
Development (OECD), both high-value, high-paying jobs and low-
value, low-paying jobs are expanding while everything in the middle
is contracting. Talent with in-demand skills—both in white-collar
and blue-collar occupations—would have a higher chance of getting
employment, albeit not necessarily with high pay level. The Bureau
of Labor Statistics projected that technical jobs that are related to
alternative energy, information technology, healthcare, and data
analysis would be the fastest-growing in the next decade. Some of

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these jobs come with high compensation, but others offer meager
wages. This wage differential makes the structure of employment
become increasingly polarized.
Both globalization and digitalization make the job polarization even
worse for developed countries like the United States. Globalization
allows businesses to move low-skill jobs offshore while focusing on
high-skill expertise to export to emerging countries. Similarly,
digitalization, especially in manufacturing automation, causes
repetitive jobs to disappear while increasing the demand for more
high-tech occupations.