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Tali Kristal

Research Findings

How computerization has opened up new opportunities for enhancing the earnings of the already privileged

February 18, 2021

Most of the research on rising economic inequality focuses on technological skill, productivity, and market forces. But of course, that is only part of the story. Just as important is workers’ bargaining power. The weakening of labor unions, which has left workers with less collective power to fight for their own interests, is a major story behind rising economic inequality in recent decades.

In a recent article, I find that rising wages for highly rewarded occupations has very little to do with technological advances, in and of itself, and a lot to do with the politics of production (broadly define) and power.

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