Impact of Productivity Growth on Income Inequality

In a recent economic analysis, a mid-sized developing country has been experiencing a steady increase in productivity, primarily attributed to advancements in technology and education. These improvements have led to shifts in the labor force's skills and increased efficiency, resulting in higher output per hour worked.

As policymakers assess the implications of this productivity growth, they must consider various factors that can influence long-term economic development. Among these, they are particularly focused on the relationship between productivity gains and income inequality.

Which of the following options best explains a potential outcome of rising productivity levels on income distribution within this country?