Effects Of Income Inequality - 1038 Words

Equality is one of the biggest concerns in most societies. Independent of philosophy, culture, or religion, the society always care about this growing issue. Inequalities are shown in diverse ways by people’s position in the distribution of wealth or income but could also be related to other characteristics like having a disability, different ethnicity or background or gender. In the 2005 World Development Report elaborated by the World Bank, it is stated: â€Å"We now have considerable evidence that equity is also instrumental to the pursuit of long-term prosperity in aggregate terms for society as a whole† (World Bank,2005). However, the increasing growth inequality experienced in many developed and developing countries in recent times is†¦show more content†¦(Castillo-Merino, Sjoberg 2008). The impact in inequality is argued to occur in both ways, through the increasing demand for skilled workers and by the elimination of lower and middle skill jobs which le ads to an increasing competition for these lower-wage jobs. (Kochan, Riordan 2015) Another reason given for explaining inequality is Globalization. It is argued that the increase in trade and offshoring has contributed to income inequality. Countries such as India, China and Brazil are known to have very cheap labour costs and have become more competitive in the global market. As a result, when imports from these countries arrive, the products manufactured in the host country cannot compete with the prices, leading to job losses in these industries. Some studies have showed that since the 80’s, USA lost over one-third of its manufacturing jobs, additionally, workers that were displaced from manufacturing jobs but regain employment suffered a reduction in their wages of at least 20% Offshoring has also make an impact in jobs and wages, US firms during 2002-2008 had an increase in offshoring practices due to lower cost and â€Å"this resulted in an advantage by higher-skilled workers who undertake more abstract and communication dependent tasks in their jobsà ¢â‚¬ (Kochan, Riordan 2015). Another growing issue in certain countries is immigrants, and especially those that arrive illegally. They are moreShow MoreRelatedIncome Inequality And Their Effects2608 Words   |  11 PagesIncome Inequality and Their Effects Income inequality is talked about frequently in modern society. Most places around the world are feeling the weight and effects of income inequality. According to businessdictionary.com, the definition of income inequality is, â€Å"A measurement of the distribution of income that highlights the gap between individuals or households making most of the income in a given country and those making very little (â€Å"What is Income Inequality†).† This definition holds trueRead MoreIncome Inequality And Its Effect On The Environment2513 Words   |  11 Pages INCOME INEQUALITY AND ITS EFFECT ON THE ENVIRONMENT- III Student’s Name Course Dated â€Æ' INCOME INEQUALITY AND ITS EFFECT ON THE ENVIRONMENT INTRODUCTION Income inequality and its effect on environment have been highlighted by a number of authors. The previous paper in this regard highlighted general and government specific aspects of the two determinants of environment, environment degradation and health. The aim of this paper is to highlight the environmental emergency that emerges due incomeRead MoreThe Effect of Income Inequality on Economic Growth1341 Words   |  5 Pagesthe population barely owns $1.7 trillion (some 0.7% of the worlds wealth), about the same as the worlds 85 richest people. (http://www.globalissues.org/article/26/poverty-facts-and-stats) So, if somebody wonders why did I choose the subject of inequality the previous lines are exactly the reason. The hypothesis I will try to prove further in my paper is that the striking gap between rich and poor population in the world cannot lead to economic growth. Furthermore, Human Capital is considered toRead MoreThe Effects Of Income Inequality For Educated Women1691 Words   |  7 PagesThe Effects of Income Inequality for Educated Women Income is a necessity that millions of men and women rely on. While advances in technology continue to develop, the need for educated workers is expected to increase as well. Because of this, the belief that a college education will ensure a well-paying job and a life of success is still a motivating factor for many students. But what if perusing a degree in order to obtain these positions meant that you still earn less than your male counterpartRead MoreLabor Unions And Its Effect On Income Inequality912 Words   |  4 PagesLABOR UNIONS With many laws enacted to tarnish their effectiveness in the appearance of a better functioning economy, labor unions appear to have an unmistakable effect on income inequality. Western and Rosenfeld explain the power of the labor union and how important of a role it holds for its workers. Western and Rosenfeld analyzes the contributions that unions made and the consequences of their decline coupled with the rise in unfair wage distribution. Kristal supports that the lack of bargainingRead MoreEmployment Equity And Its Effect On Income Inequality2490 Words   |  10 Pagesthe numerical objective of Employment Equity Policy to increase the representation and dissemination of the four mentioned groups (Barker 2008). The thesis of this paper is to prove that employment equity is fair and necessary to diminish income inequality. To do so, the paper first reviews the available literatures and schools of thought. Then, the paper focuses more on addressing the thesis and providing evidences to support the argument. The paper ends with a short conclusion. The paper utilizedRead MoreEssay on Income Inequality and the Effect on Gender Diversity1080 Words   |  5 Pagesthe same time, it would seem fair that women and men would earn the same amount. However, this is not the case. Women, working alongside with men, are paid less than the men. This income inequality can cause women to work in other companies. As a result, gender diversity is reduced. To promote gender diversity, Income should be equal regardless of gender. Because women have been employed in the workforce for many years, they should be treated as equals to men. During the initial stage of employingRead MoreIncome Inequality: It’s Effect on African-American Single Mothers and Their Children1629 Words   |  7 PagesIncome Inequality: It’s Effect on African-American Single Mothers and Their Children. I believe that it’s not fair for single mothers to get paid less, when some of them are the back bones of this country. Currently the minimum wage, in the United States, is set to 8$ per hour. Women in general are only paid 77%, so it is appropriate to assume that through mathematics, women get a wage as high as $6.16. African-American women only get paid 64% of every dollar a man makes. If the minimum wage isRead MoreEducation And Income Inequality : New Evidence From Cross Country Data Essay927 Words   |  4 PagesLee published â€Å"Education and Income Inequality: New Evidence from Cross-Country Data† in the early 2000s (Gregorio Lee, 2002). This paper looks at empirical evidence on how educational factors, like higher educational attainment and equal distribution of education, play a significant role in income distribution. The authors Gregorio and Lee state that many other literature pieces emphasize education as one of the major factors affecting the degree o f income inequality (Gregorio Lee, 2002). GregorioRead MoreThe Effects of Wealth Inequality in the U.S.1484 Words   |  6 PagesGiovenco Political Science Inequality Paper 12-18-14 The Effects of Wealth Inequality in the United States Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being