 Globalization also lowers wages across the board.The most powerful causes are the redistributive effects of government, through laws such as those that discourage unionization, determine corporate governance, and limit the extent of monopoly rents.These laws generally are plutocratic and accrue benefit to those at the top, at the expense of those in the middle, driving many of the latter into the bottom.As an example of how polarization is affected by labor demand, rather than skill distributions, changing patterns of employment and earnings show strong correlations between wages and the proportion of a skill group employed.