1.Introduction The phenomenon of economic inequality has existed for a long time in history. One would usually expect todays inequality rates to be much lower than in times of European colonialism and exploitation in the 17th until early twentieth century where organisations like the British East Indian Company rose to account for half of worlds trade. However, recent Studies by the Organisation for Economic Co-operation and development can prove that inequality worldwide is about the same as it was in 1820 (The Economist, 2014). How is that possible? The increase in economic inequality in the last century is a big issue and has created great controversies among political representatives and economic experts.
This implied that income redistribution approach of the US to diminish income inequality could be flawed. Following inappropriate poverty measurement is the fact of growing income dispersion. Statistics showed that well-educated individuals tend to earn more and receive faster raises than those who were not well educated (Besharov & Call, 2009). Along with the rising returns to
They found positive human capital externalities between workers of the same race. An increase in Black human capital increased the wages of black workers meaning demand effect is greater than the supply effect. A more educated black workforce had positive externalities on Coloreds and Whites. Whites benefit from a more educated black labor force yet the Bantu Act restricted education access for the blacks .White human capital did not have an impact due to the fact that Blacks were mostly unskilled labor while Whites were a skilled labor force. They also found that women’s wages were lower than men’s across all racial groups with white males earning the most and that wages were higher in the urban areas compared to the rural areas.
Graphing income distribution around the world revealed two peaks – one at $15 a day, driven by the developed economies of Europe and the Americas, and a second – much larger – peak at $0.80 a day, primarily due to the high poverty levels in Asia and Africa . These two dramatically distinct peaks demonstrate the pronounced regional economic inequality that then existed between developed and developing countries. Today, there is only one peak on the graph, at roughly $7 a day, driven by the industrialization of Asia . However, while inter-state regional economic inequality is decreasing, intra-state inequality between regions is increasing in nearly all cases. In this paper, I will analyze this changing regional inequality from both a intra- and inter-state level and will hypothesize the implications these changes will bring to the Global Order over the coming decades .
It’s the simple societies, that will have very few social roles and statuses occupied by the members, social inequality may be very low. Socioeconomic will be increasing because we have such a high rate of poverty in America. Socio-economic inequalities have been rising so much in the European Union and in most of our countries including America are way higher today than in 1980. Which is leading to increasing. These trends are way similar to the ones found in the United States of America and other industrialized economies and reflect whole lot of the combined effects of changes taking place in our labor market, which is linked to globalization and technological change, in social variables, such as household and so much
Or is it because women are more likely than men to work part-time? The gender wage gap is the difference in pay for men and women to do the same job. In Iowa in 2013, women made 78 percent of what men made. In 1973 women made 57% of what men made and the number of that increased 21% by 2013 putting the comparison at 78%. Over the last sixty years, American women have made incredible progress in the labor market.
Records show that in 1900, the ratio of the average income of the five richest countries in the world to the 5-10 poorest countries was about 9:1. One hundred years later, that ratio is 100:1 (www.weareoneamerica.org/root-causes-migration-fact-sheet). These inequalities among countries coupled with limited opportunities for employment that provides adequate incomes to cater for families has stimulated increased migration from developing to developed nations. It was reported that between 2000 and 2005, the developed economies of the world welcomed an estimated 2.6 million migrants annually from the developing nations (https://www.weareoneamerica.org). The relative ease of global mobility allows people to migrate to far places globally.
This goes to show that people who go to college earn more money then people who do not. In 2016, the average income for people 25 years old and older with a high school diploma was $35,615, while the income for those with a bachelor's degree was $65,482, and $92,525 for those with advanced degrees(Is a college). This difference is a significant difference and it is also a motivation for so people to go to college. The lifetime income of families headed by individuals with a bachelor's degree will be about $1.6 million more than the incomes of families headed by those with a high-school diploma, according to the Postsecondary Education Opportunity Research Letter(Hansen). This states that people who have a bachelor's degree make on average, more money than people who do not have the degree.
Income inequality today is higher than ever with the average annual income of the top 0.1 percent totaling to $6,373,782 and the bottom 90 percent of the population’s household income averaging only $30,997. How could this happen? Some reasons include deindustrialization, technological advancements, and political climate. Differences in wealth is even worse than the differences seen in income rates. The percent of total wealth held by the top 0.1 of the country has increased from 7 to 22 percent.
According to Henry Bienan, PhD, President of northwestern claims that a college education brings greater productivity, lower crime and better health for more educated people. A study that was done in 2009 discovered that 16 to 24 year old's that are secondary school drop outs have 63% higher opportunity to be detained than those with four year college education or higher. This effects society adversely . Also the Bureau of Labor Statistics stated that from September 2008-09, 43% of college graduates did volunteer work were as only 19% of high school graduates. This in all proves the point that college graduates are vital and more productive members of society and should be given free tuition.