Although it is still crucial to point out, that markets are still developing, and as the product demand keeps rising, the production has been moved to developing countries, where exploitation is the main reason behind terrible living and working conditions, and often child labour. Furthermore, even if living conditions have improved in developed countries, this uneven distribution of power is still present and resulting in social inequality, as for example regarding education, even though more students from lower and middle classes are more likely to get a higher education today than just half a century ago. By looking at the subdivision of students in universities in the U.S., for example economic resources are often the reason behind why students from working-class families are lesser than students from higher-class families. Financial resources play a crucial role: in the U.S. students will usually have to take big loans in order to attend their studies, but these loans are usually difficult to pay back, once that students are done with their education. It often takes several years to pay them back.
The concept of social inequality tackles the existence of unequal opportunities for people of different status and positions in the society. While it normal to have a form of stratification in the society, there are situations that remain dire and need urgent intervention to try and bring about a balance. There are various dimensions of social inequality including income, wealth, power, and ethnicity. Social inequality has adverse effects on citizens of a particular nation especially on the quality of life due to unequal access to important social amenities. In Tracy Kidder’s Mountains Beyond Mountains, the author has a particular focus on several aspects of life in Haiti.
The attitude of demographers and economists about the role of population in economic development has undergone a dramatic change in recent years-from a pessimistic to an optimistic view. Earlier many scholars believed that rapid growth of population puts a constraint on faster growth by diverting resources from investment to consumption. The more recent view holds that the process of demographic transition resulting from a fast decline in mortality rates and a slower decline in birth rates creates a population bulge initially in the younger age group, but creates a window of opportunity later when the young join the work force. The demographic dividend hypothesis relies on the changes in the age structure of population leading to a rise in
The trend where only the rich become richer can be solved by putting more attention on education and investing in human capital. This may not be effected within the next decade because of the growing divide between the poor and the rich in most countries, for example the United States and even Hong Kong. Often, the manner in which resources are being allocated is an obstacle to solving the problem. The problem is a vicious cycle and it will need the joint efforts of governments and all stakeholders to reduce the gap in economic
High skilled labour and skilled-labour able to generate higher income than the low-skilled or unskilled labour. This is because technological changes can disproportionately raise the demand for capital and skilled labour over low-skilled and unskilled labour by eliminating many jobs through automation or upgrading the skill level required to attain or keep those jobs (Card and Dinardo 2002; Acemoglu 1998). Because of technological advances, there have been found that technological change has contribute the most to rising income inequality. In addition, Financial
According to this theory, rapid population growth forces fami- lies to consume what otherwise would be savings, adversely affecting national savings rates and thus capital formation and invest- ment rates as well. Moreover, high youth de- pendency ratios force nations to invest scarce capital in a game of "catch-up" as they at- tempt to provide education, infrastructure, and jobs for burgeoning populations (Simmons 1988:129-31). Allocating capital to nonproductive segments of the population (e.g., educational expenditures) forces a na- tion to undercapitalize its existing labor force (Bloom and Freeman 1988). (Crenshaw et al.,
This project will argue the outcomes of income inequality on social cohesion and discuss its some specific damaging consequences, such as violence crime, alcohol, drug and cigarette addiction and social mobility. Rowlingson (2011) hypothesized that there is an independent connection between income gap and social issues, like criminal wrongdoings, intergenerational mobility and drug, cigarette and alcohol consumption. There are a considerable amount of people, who suffer from everlasting conflicts caused by financial differentiation around the world. According to statistics, size of impacts on social cohesion looks insignificant (Zagorski et al. 2013, 1089).
It is widely believed, that mechanisms, implemented in markets, societies and policies are able to prevent undermining the potential for economic growth and are able to align the level of inequality in Asian countries. To begin with, income inequality is usually measured at national level and it is apparently defined as an uneven distribution of money among the population. In this essay such three mechanisms as improved education, tax policy and redistribution are going to be addressed and examined in more detail. Due to this fact, the main aim is to provide mechanisms significance and to prove their effectiveness and inevitable role in economic and social development. In the world where most educated receive the largest share of benefits from technological progress and rapidly changing social environment , it is not surprising that government expenditure on education has proved to be a highly effective tool in reducing inequality.
JEL CLASIIFICATION: O11; O40. O20; I25;F62;F63 Keywords: Ex-ante Human Capital, Ex-post Human Capital, Children Quality, Education, Schooling 1 INTRODUCTION Until today, accounting for countries growth rates heterogeneity around the world, remains a central issue of comparative economic development in order to understand growth movements over time in the economic literature. The problem began with the impossibility to show where growth came from, since the poor grow faster
Fertility rate directly corresponds to high birth rate and unfortunately can not be altered overnight. As a result, high fertility rate now will most likely result in higher population growth in next 2-3 decades. This, is also know as the hidden momentum of population growth, which directly affects the demographic trends of the country. High fertility rate cannot be decreased over night due to the fact that it is not easy to overcome social, economic and political factors which have resulted in such high fertility rates over the centuries. Especially in a developing country like India, where most of its population depends on agricultural output, and as a result have higher number of children in order to avoid hiring extra labor and also to support them when they get older.