Understanding Income Inequality: The Role of Technologies and Consumer Demand

Rising income inequality has been a defining feature of developed economies since the 1980s. While technological change is widely recognized as a key driver of growing income disparities—benefiting highly skilled workers while displacing routine jobs through automation—this tells only half the story. Consumer spending has also evolved substantially, affecting demand for workers producing goods that we choose to spend our money on. This talk summarizes the key theories linking changes in production to income inequality and presents new evidence on how changes in consumer demand have played a crucial yet overlooked role in moderating income inequality.

Mila Markevych is a PhD Candidate in Economics at the Vancouver School of Economics, UBC. Her main research focuses on income inequality in the context of structural transformation. Her work examines how technological progress and evolving consumer demand shape labour markets and drive the reallocation of economic activity across sectors.