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Economics glossary · Work and what it pays

Differences in skills and pay

What differences in skills and pay means in economics, as one of causes of income and wealth inequality, with an example and a question to test yourself.

Definition
Differences in skills and pay
Wages differ between jobs, and the pay of high-skilled workers has risen faster than that of low-skilled workers as demand for skills outran supply.
Example

Can you think of an example of differences in skills and pay?

Test yourself

Can you name four causes of income and wealth inequality within a country?

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