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Reading 1/1:
Read the text and choose the correct answer
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1. Income inequality has been rising in many wealthy countries in recent decades. In the 1980s, the average disposable income of the richest 10% in OECD countries was around seven times higher than that of the poorest 10%; today, it's around 9½ times higher.
2. Much of the focus of the inequality debate has been on the rising incomes of the 1%. But there is also growing concern about the economic situation of a large swathe of low-eamers -
perhaps as much as the bottom 40% in some countries - who have been slipping behind. As a 2015 OECD report pointed out. "When such a large group in the population gains so little from economic growth, the social fabric frays and trust in institutions is weakened.3. The causes of these growing income gaps are complex and reflect both economic and social changes. Globalization, and in particular the impact of technology on the workforce, is one
important factor. Social changes, such as shifts in marriage patterns have also played a role. And, when it comes to the rise of top incomes, a number of special factors "come into play", including the growing use of performance pay, shifting pay expectations and changes in tax policy.
4. Since the late 1990s, the engine of the world economy has moved from the traditionally wealthy OECD countries to developing and emerging economies - a phenomenon sometimes called "shifting wealth". China and India are the most famous examples, but they're not alone: In the 1990s, only 12 developing economies saw their GDP per capita grow at more than double the rate of OECD countries; in the 2000s that number soared to 83.5. Lately, economies in many emerging economies have slowed, reducing the pace of this shift in global wealth as The Economist has noted, "its most tumultuous phase seems to have
more or less reached its end. Nevertheless, the impact of this shift has been profound. Many developing countries are seeing huge numbers of people escaping poverty and the emergence
of a new middle class - even if many of its members are still on a very fragile financial footing. But, many also, are seeing widening income inequality, although the factors behind this are not
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always quite the same as in developed countries.6. One consequence of these trends is that most of the world's poorest people no longer live in the world's poorest countries. According to the British researcher Andy Sumner, about
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threequarters of the world's 1.3 billion poorest people now live in what the World Bank classes as middle-income countries (MICs), most notably India. That raises the question of whether or
not growth is inclusive - is it simply enriching an educated elite or is it bringing broad benefits?Theanswer to that isn't always clear. As the development expert Owen Barder has noted. "The figures suggest that the biggest causes of poverty are not lack of development in the country
as a whole, but political, economic and social marginalisation of particular groups in countries that are otherwise doing quite well."7. Income explains only some of these regional inequalities, although in some emerging economies notably China and India-it's significant, with urban incomes rising faster than rural. But
there are also inequalities of opportunity - notably access to healthcare, education and jobs that are perhaps more important. For example, in some emerging economies, enrolment in
secondary education is much lower in rural areas than in urban, especially for girls. Access to basic healthcare can also vary greatly depending on where people live. In Asia, for example,infant mortality is typically much higher in the countryside than in the cities. And, in many parts of the world women still face many barriers that deprive their families and communities of
valuable economic contributions.
8. Other factors are also at work. One, for example, is the extent to which people in many poorer countries work informally, with no written contracts and little in the way of terms and conditions of employment. In Mexico and Brazil, around half of jobs are in the informal sector, a level that rises to around 80% in India and Indonesia. Such jobs contribute to inequality in a number of ways for one thing, they pay less than formal jobs. They also rarely offer workers opportunities for training and promotion. And
they are unpredictable, meaning workers may find themselves without an income at very short notice.
9. All of the flows that constitute globalization can have some impact on income inequality, but perhaps none more so than technology and information flows. That's not so surprising - technology has long had an impact on people's livelihoods. Take the Luddites, textile workers in 19th century England who smashed up newly installed machinery. The Luddites are sometimes portrayed as having been almost irrationally fearful of technology. In fact, they had good reasons to oppose it. They were craftsmen
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