Nonetheless, it is the income inequality that gets more attention. Economists measure income inequality using two methods; the Gini coefficient and the ratio of income. The Gini coefficient is a summary of…
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These factors are numerous and include; increases in the financial returns of education, the effects of trade liberalization, changes in government tax and welfare policy and changes in employment patterns (Cribb, 2013). Technological progress has increased financial returns to education to which is thought of as the wage premium that more highly skilled workers enjoy over less skilled workers.Answers to profound income inequality have always been related to the four reasons; however, more baffling is the rapid increase in the income of the workers at the top, for instance (Cribb, 2013), asserts that those who are in the top 0.1% have had their income rising faster than those who occupy the top 1%. Nonetheless, globalization and international labour mobility has been cited to be leading cause of the increasing disparity.
The purpose of the text is to explore income inequality in the UK and achieves the purpose as it vividly provides the answer to the quest of the assignment; causes of inequality in the UK. The paper, Income inequality in the UK, by Jonathan Cribb was published by a respectable institution, the Economic review on February
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One of the reasons which have often been argued to cause such discrepancies can be identified as the impact of globalisation created on trade practices engaging various economic structures. It is in this context that the increasing degree of globalisation involved various trade practices among developed and developing countries, possessing dissimilar economic characteristics.
It follows that under conventional economics, the equilibrium wage rate of labour can be inferred as a function of differential productivities or differences in labour’s preferences between work and leisure given the disparities in wage rate across gender, race, ethnicity or localities.
In the main, Paul Krugman thinks that income inequality is a moral issue because income inequality, from the experience o the United States, has moral consequences. By moral consequences is meant that income inequality has caused severe and substantial, demonstrated harms to society, and as such, falls into the sphere of right and wrong.
on is the hierarchy division of society, social stratification leads to social inequality in that certain groups stand high in social ranking, control scarce resources and receive special treatment. 1
The consequences of social inequality include difference in living standards,
639). The first edition of Smith’s book, “The Wealth of Nations,” was written in 1776. This discussion utilized the third edition dated 1784. Adam Smith lived from 1723 to 1790 (Ekelund and Hebert 1997, p. 97; Landreth
Several development agencies in international lending institutions have over the years emphasized on poverty eradication as a means of economic empowerment especially in middle income countries. This is well demonstrated by the components of the Millennium Development Goals (MDGs).
and Scott, G., 2012).
Industries and job variation is the main cause of income inequality. Industries experiencing a high rate of growth including Information technology and business/ financial services,
The paper analyzes that wealth inequality is the unequal distribution of assets and saving among individuals in a country while income inequality is the extent of uneven distribution of income in the society creating a wide gap between the rich and the poor.
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