INEQUALITY AND ITS CAUSE AND EFFECTS
What is income inequality? It refers to unequal distributions of income. Close to 1 billion people live on less than 1 dollar per day at purchasing power parity and around 2.7 billion (40 percent of world populations) live on less than 2 dollar per day
Income inequality is of major concern because it leads to economic inefficiency. This is mostly due to the fact that at higher levels of inequality, smaller fraction of population qualifies for a loan or other credit.therefore, inequality implies poor collateral. So when low income individuals cannot borrow, they have trouble educating their children and expanding their business..
With high levels on income inequality, the national savings drop .high inequality …show more content…
The main reason why education affects income inequality is because there is a positive correlation between level of education and level of lifetime earnings.
In short, if for financial or other reasons, the poor are effectively denied access to secondary and higher educational oppurtunities, the the educational system can perpetuate and even increase inequality in developing countries.
Due to higher costs and lower expected benefits of education, poor family’s rate of return from investment in child’s education I slower than it is for other families. So poor kids are more likely to drop out of college or schooling. The high opportunity cost of labor is because children are required to work on family farm in rural societies. So there is a real cost to poor family of having an able bodied child attend school when there is work to be done on the farm. As a result of this, school attendance and school performance tends to be much lower for children of poor families than those from high income …show more content…
Main reasons for their failure is lack of focus or changing goals from year to year and poor fundraising skills.
3) Discrimination
When it comes to discrimination, many topics can be discussed like gender, ethnicity, age, nepotism etc.one of the most contemporary subjects of discussions in all fields of study is gender discrimination and its impact on all spheres of life. There is very clear gender pay gap that persists in most industries. Most companies belong to the school of thought that accepts that men have more flexible working time that woman. This has a major impact of their opportunity for promotion and wages. Unfortunately some of it is true i.e. there are women whose actions conform to this norm.
Some women have the tendency to move or shift location when their husband gets a transfer or are forced to move around with their families. To top this off, there is the general notion of ‘motherly love’ and its irreplacability that seems to have an upper hand over ‘fatherly love’ in our society.
All the above mentioned norms add up and get internalized into the minds of a working women and her
What is income inequality? It refers to unequal distributions of income. Close to 1 billion people live on less than 1 dollar per day at purchasing power parity and around 2.7 billion (40 percent of world populations) live on less than 2 dollar per day
Income inequality is of major concern because it leads to economic inefficiency. This is mostly due to the fact that at higher levels of inequality, smaller fraction of population qualifies for a loan or other credit.therefore, inequality implies poor collateral. So when low income individuals cannot borrow, they have trouble educating their children and expanding their business..
With high levels on income inequality, the national savings drop .high inequality …show more content…
The main reason why education affects income inequality is because there is a positive correlation between level of education and level of lifetime earnings.
In short, if for financial or other reasons, the poor are effectively denied access to secondary and higher educational oppurtunities, the the educational system can perpetuate and even increase inequality in developing countries.
Due to higher costs and lower expected benefits of education, poor family’s rate of return from investment in child’s education I slower than it is for other families. So poor kids are more likely to drop out of college or schooling. The high opportunity cost of labor is because children are required to work on family farm in rural societies. So there is a real cost to poor family of having an able bodied child attend school when there is work to be done on the farm. As a result of this, school attendance and school performance tends to be much lower for children of poor families than those from high income …show more content…
Main reasons for their failure is lack of focus or changing goals from year to year and poor fundraising skills.
3) Discrimination
When it comes to discrimination, many topics can be discussed like gender, ethnicity, age, nepotism etc.one of the most contemporary subjects of discussions in all fields of study is gender discrimination and its impact on all spheres of life. There is very clear gender pay gap that persists in most industries. Most companies belong to the school of thought that accepts that men have more flexible working time that woman. This has a major impact of their opportunity for promotion and wages. Unfortunately some of it is true i.e. there are women whose actions conform to this norm.
Some women have the tendency to move or shift location when their husband gets a transfer or are forced to move around with their families. To top this off, there is the general notion of ‘motherly love’ and its irreplacability that seems to have an upper hand over ‘fatherly love’ in our society.
All the above mentioned norms add up and get internalized into the minds of a working women and her