Income inequality will remain a persistent problem despite brighter prospects for U.S. companies globally, according to an annual survey of Harvard Business School alumni. Fifty-eight percent of the respondents said they thought the U.S. economy would either become more competitive or at least hold its ground against other countries over the next three years, a marked improvement from 2011 when just 29 percent felt that way.

But only about a third of respondents said they expected companies to be able to increase pay and benefits for workers. The wealth disparity alarmed many of the surveyed executives, with 45 percent saying that rising poverty levels could hurt their businesses. The respondents said they worry about the growing concentration of wealth among a sliver of the population, but they appear uncertain of how to reduce inequality.

The respondents suggested that greater economic inequality could ultimately reduce demand for their products, hurt social stability, make it harder to acquire skilled workers and provoke a backlash against successful companies.

-- Associated Press