hat might be the causes of such episodes? Two views (see Atkinson, 1999): - The Transatlantic Consensus argues that rising inequality in industrialized countries is due to a shift in demand away from unskilled to skilled labour Increased demand for skilled labour means their wages are bid up; decreased demand for unskilled labour means their wages decrease - Thus rising inequality This changing labour market may be due to liberalization of trade; competition from newly industrializing countries; technological change that favours skilled labour (increased use of information technology and automation) or sectors. - If there is a state-imposed wage floor, then there will be rising unemployment. - Said to explain inequality in the United States and higher unemployment in Europe