Fueling United States income inequality - Research Paper Example

Immigrants have limited access to educational opportunities as compared to the Native American’s resulting in the disparity. Immigration is perceived to affect the economy of the country in that it changes the labor supply thus causing an increase in the population of low-skilled labor. This subsequently causes a pressure on wages and income.This paper explores the theories of income inequality between Americans and immigrants. Its main objective is shedding light on the issue of income inequality and the possible measures that can be taken to solve the problem.

Immigration is often considered as a proximate cause of the increased gap existing between the low and high skilled workers. The paper offers an overview and existing information regarding the relationship between immigration and inequality with a focus being evidence from the cross-city comparison in the United States. The overall wage inequality of the natives and immigrants is largely reflecting the concentration of the immigrants in the tails of the distribution of skills as well as high residual inequality among them.

The paper analyses the current income statement in the United States and provides recommendations.Income inequality ought to be defined as the economic attainment as the differences between individual’s populations in a given area. It is an Anglo-Saxon issue that that has essential implications to the social mobility in the population. Historically inequality in income ought to evolve differently between deferent countries and states. An example is Germany income inequality has been flat while, in the United States, it has increased significantly in the last 30 years.

Although there is literature supporting the causes of inequality, there are disagreements about the causes of income inequality increase in the United States.