Essay on Economic Inequality And Income Inequality

2218 Words May 5th, 2016 9 Pages
Economic inequality is the differences found in various measures of the economy within an individuals of a group, groups in a population, and among countries. Economic inequality is sometimes called income inequality, wealth inequality, or the wealth gap. (Fitz, Nicholas 2). There are three main types of economic inequality. Income is the extent to which income is distributed unevenly in a group of people. Income is not just the money by pay but also money received from employment, investments, shares of stock, savings, state benefits, pensions and rent. (Madland, David 2). Pay inequality is a person’s pay, which is different to their income. Pay refers to payment from employment only. This can be on an hourly, monthly or annually based. Wealth Inequality is when Wealth refers to the total amount of assets of an individual or household. This can include financial assets, such as bonds and stocks, property and private pensions. (Madland, David 5). Wealth inequality therefore refers to the unequal distribution of assets in a group of people.
Economic Inequality can be measured various ways. One way is through the Gini coefficient which measures inequality across the whole of society rather than comparing different income groups. For example the UK 's Gini is 0.34. (Howarth, Robert B 3). The lower the Gini value, the more equal a society. The Gini coefficient can measure inequality before or after tax. The Gini will change depending on what is measured. Another methods of…

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