"There are a lot of sources of inequality, a few of which pay for themselves economically for the society at large, " he says.

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If this organisational change is indeed an important cause of rising pay inequality, two conclusions follow.

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In these models, inequality was seen as a problem of pay differences, best addressed through taxes on labour incomes.

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Similarly, Sanofi-Aventis also settled a suit in March on behalf of 4, 000 female sales representatives who claimed inequality in pay and promotions.

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Trade unions believe that will lead to growing inequality as salaries in some parts of the country are frozen while others get pay rises.

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Changing the pay rate of 6% might have some marginal effect on inequality, yes.

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The Administration has looked at issues from workplace flexibility to wage inequality, and taken action by passing the Lily Ledbetter Fair Pay Act and supporting the passage of the Paycheck Fairness Act.

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If inequality is one of those things that you worry about, surely a little more in-country inequality is a small price to pay for a fall in global?

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