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Income Inequality BSA2-2 (edited)
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INCOME INEQUALITYBalbon, MekhaAlfane, Ritz Dale Pamulag, Gem
DefinitionCausesEffectsPeople InvolvedRemediesStatistics
1
What is Income Inequality?
it refers to the extent to which income is distributed in an uneven manner among a population.
2
The study noted that the Philippines registered a Gini coefficient of 44 percent last year, higher than Thailands 42.5 percent, Indonesias 39.4 percent, Malaysias 37.9 percent and Vietnams 37.8 percent
Gini coefficientis ameasure of statistical dispersionintended to represent the income distribution of a nation's residents, and is the most commonly used measure of inequality
Inequality isnt just about the inability of some to afford finer things in life. Research suggest that a wide gulf between incomes can have more pernicious effect, such as increased feelings of disenfranchisement, fewer opportunities for advancement, and increased poverty.
Causes of income inequalityInnate AbilityEducationComputerizationGender, Race &CultureGlobalization
Innate Ability
Many people believe that differences in ability, such as intelligence, motivation, strength, or charisma, are largely innate and play a significant role in determining an individual's wealth
EDUCATION
Income differences between the varying levels of educational attainment (usually measured by the highest degree of education an individual has completed) have increased.
COMPTUTERIZATION/INNOVATIVE TECHNOLOGY
This resulted in a rightward shift in the Demand for Skilled Labor Supply, and this created an increase in the relative wages of the skilled compared to the wages of the unskilled workers. Such a change in wages added to the inequality that was already present.
The existence of different genders, races and cultures within a society is also thought to contribute to economic inequality. GENDER, RACE AND CULTURE
Trade liberalization may shift economic inequality from a global to a domestic scale.GLOBALIZATION
effects of income inequalityECONOMIC GROWTHPOVERTYPOOR HEALTHCRIME OR VIOLENCE
It is one of the effects of the income inequality because laborers received low income salaries that cannot satisfy their daily needs. Many uneducated people experience poverty because of their lack of education and professional merits. POVERTY
CRIME OR VIOLENCE
This is common in societies where income differences are larger. People tend to commit crimes because of their desire to sustain their diminishing incomes and to satisfy their wants.
ECONOMIC GROWTHAs long as the poverty rate increases, it will cause to the sudden loss of income that will affect the economic growth of the society.
POOR HEALTHInsufficient income in the society will cause great problem to organizations that provide needs to those who are needy especially in HealthCare departments.
Who are likely to receive less than average income?the unemployedthe underemployedthe sick and disabledthose with poor qualifications or low skillsthe elderlythose working in the unofficial labour market where pay below the legal minimum
Remedies:Progressive Taxes: tax the richer at higher% rate than poorWelfare tranfers to the poorMass education: increase supply of skilled labor Subsidize essential goods and services
Spend tax payers on schoolsTax Wealth Minimum wage legislation- to raise the income of the poorest working groupRemedies:
https://psa.gov.ph/content/2006-family-income-and -expenditure-survey-final-results
Income inequality data from the Family Income and Expenditure SurveyThank You! God bless