Sociology – Paper 4 – Globalisation: Contemporary issues | e-Consult
Paper 4 – Globalisation: Contemporary issues (1 questions)
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Two principal pathways through which globalisation can widen income gaps are:
- Skill‑biased technological change: The introduction of advanced machinery and ICT favours workers with higher education and specialised skills. As firms adopt more capital‑intensive production methods, demand for low‑skill labour falls, leading to wage polarization. This “skill‑bias” raises the earnings of the educated elite while marginalising unskilled workers.
- Unequal access to global markets: Export‑oriented sectors often concentrate in regions with better infrastructure and investment incentives. Entrepreneurs and landowners who can access credit and export channels reap large profits, whereas smallholder farmers and informal workers remain confined to domestic, low‑value markets. The resulting regional and sectoral disparities increase overall income inequality.
Both mechanisms are amplified when domestic policies (e.g., weak labour protections, limited social safety nets) fail to redistribute the gains from global integration.