If the main cause of the weakness in wage growth/labour share is primarily globalisation/demography, as we think, then it will reverse over coming decades. If it is primarily a technological matter, then it may well continue, as artificial intelligence (AI), for example, kicks in. And whether concentration/monopoly in private industry grows, or lessens, in future is largely a matter for public policy, and could go either way. So our view is that the growing inequality within countries has been mainly caused by the unprecedented surge in labour availability, caused by globalisation and
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