Response to HBR Article: Corporations in the age of inequality.

Today I read the HBR Article: Corporations in the age of inequality, and I must say it is an interesting read worth your time. You can access the article at: https://hbr.org/cover-story/2017/03/corporations-in-the-age-of-inequality. According to it, firm inequality contributes considerably to the increasing income gap, as the top talent of skill labor tends to concentrate within the most prominent and successful firms (which in turn also generates global political trends such as populism).

According to the article, a practical explanation for the rising gap between companies is that companies tackle more generous salaries with the objective of effectively attracting top talented to their corporation. Similarly, “as companies focused on their core competences and outsourced non-core work, the corporate world began to divide between knowledge-intensive companies such as apple, Goldman Sachs and McKinney, and labor-intensive companies such as Soxedo, which provides food service and facility management services”.