Prompt
Widening income inequality
In many countries the gap between the rich and the poor is widening. What are the causes of this problem and what measures can be taken to address it?
Band 9 sample answer
Band 9 sample answer
In many societies, the gap between wealthy and low-income groups is growing, creating economic insecurity and social tension. This trend is largely driven by structural changes in labour markets and policy choices that have failed to keep pace with them. However, a combination of targeted redistribution and long-term investment can help narrow disparities.
One major cause is the way globalisation and technological change reward high-skilled workers while reducing demand for routine labour. As firms automate or outsource, wages at the bottom stagnate, whereas top earners—particularly in finance and technology—benefit from “winner-takes-most” markets and stock-based pay. A second factor is weakened bargaining power among ordinary employees, due to declining union membership and the rise of temporary or gig work. Finally, tax systems in some countries have become less progressive, while asset inflation in housing and shares has disproportionately enriched those who already own capital.
To address this, governments should strengthen progressive taxation and close loopholes that allow high earners to shift income into lightly taxed forms. Revenue can then fund effective transfers such as child benefits and earned-income credits, which boost take-home pay without discouraging work. Equally important are measures that raise pre-tax incomes: investing in high-quality vocational training, subsidising lifelong learning, and aligning education with labour-market needs. In addition, updating minimum wages and extending basic protections—such as sick pay and collective bargaining rights—to non-standard workers would curb exploitation in insecure sectors. Finally, policies that expand affordable housing supply can reduce the wealth divide created by rising property prices.
Overall, widening inequality stems from skill-biased economic change compounded by weak worker protections and imbalanced tax and asset dynamics. Tackling it requires both fairer redistribution and reforms that enable broad-based wage growth.
Verified word count: 294
Why this answer works
explanation
The response addresses both parts of the question with a clear structure: introduction, causes, measures, and a concluding overview. Causes are specific (skill-biased technological change, weakened bargaining power, reduced progressivity, asset inflation) and measures are directly linked to those causes (progressive taxation, transfers, training, labour protections, housing supply). Ideas are developed with realistic policy instruments and precise language, supporting a Band 9 standard.
what this question tests
This is a two-part Task 2 question testing your ability to: (1) explain key drivers of widening income inequality (causes) with clear, relevant examples; (2) propose realistic, policy-level solutions (measures) and evaluate how they address those drivers; (3) maintain a clear structure and cohesive argument while using precise academic vocabulary.
Useful vocabulary and phrases
winner-takes-most markets
Shows precise understanding of modern inequality dynamics.
Digital platforms often create winner-takes-most markets where profits concentrate at the top.
skill-biased technological change
A high-level academic term that fits the causes discussion.
Skill-biased technological change can leave low-skilled workers with fewer well-paid options.
weakened bargaining power
Directly explains wage stagnation in clear, formal language.
With weakened bargaining power, employees may accept lower pay and fewer benefits.
close tax loopholes
Links policy action to fairness and revenue generation.
Governments can close tax loopholes to ensure high earners contribute proportionately.
earned-income tax credit
Concrete, credible measure rather than vague suggestions.
An earned-income tax credit can raise take-home pay while encouraging employment.
non-standard workers
Accurate term reflecting current labour-market realities.
Extending protections to non-standard workers reduces insecurity and exploitation.
broad-based wage growth
Summarises the solution goal in an academic, concise way.
Policies should aim for broad-based wage growth rather than isolated gains for executives.
Common mistakes to avoid
- Listing causes and solutions without explaining mechanisms (how each factor widens the gap).
- Offering only vague measures (e.g., “improve the economy”) without policy details.
- Ignoring wealth inequality drivers such as housing and asset ownership.
- Overgeneralising about ‘the rich’ or ‘the poor’ using emotional or informal language.
- Writing an unbalanced essay that focuses heavily on causes but gives minimal solutions.
Want examiner-style feedback on your answer?
Submit your essay and unlock a band estimate, corrections, and improvement steps.
Get examiner-style feedback