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In what ways has the ratio of top executive pay compared to average workers' pay changed over time?

A) Increased
B) Decreased
C) Remained relatively stable
D) Varied across industries and sectors

User Zarej
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1 Answer

2 votes

Final answer:

The disparity between top executive pay and average worker pay has significantly increased. CEOs now earn, on average, 350 times more than the average worker, compared to a much smaller ratio in the early 1980s. The correct option is A.

Step-by-step explanation:

The ratio of top executive pay compared to average workers' pay has changed drastically over time, reflecting an increase in this disparity. Since the 1980s, the divide between the pay of CEOs and average workers has grown significantly. According to the AFL-CIO 2014, the average pay of a CEO was 350 times that of the average worker, up from less than 50 times in 1983.

The wealth and income inequality was further highlighted by the fact that during the years leading up to the Occupy movement, the top 1 percent in the US secured a substantial portion of the economic growth for themselves. Furthermore, manual Castells (2012) indicates that while the top 5 percent saw their wealth increase by 42 percent, real hourly wages for the average worker increased by only 2 percent.

In addition, after the recession, while CEO pay rose by more than 298 percent, corporate profits also surged more than 141 percent, revealing the continuing trend of top executives earning disproportionately more than the average worker.

User RavanH
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