Income inequality is one of the big issues in 21st century. Unequal distribution of income in society is considered to be an obstacle to economic growth. The income allocation of a country’s population can be measured by a Gini coefficient. The value of Gini coefficient can be between 0 and 1 and used to define the income gap between the rich and the poor. The value 0 shows perfect equality and value 1 illustrates perfect inequality.
Developing people’s capabilities or merits is the most efficient way to extend general equality, as everyone would have an equal opportunity to compete in a true meritocracy; and because this system is relatively just, any inequality that emerges from this system is 5 justifiable, as any inequality would have naturally sifted through the system based on an individual’s natural merit (Mathewson). Social hierarchies within the United States are not solely based on wealth, as they are also based on skill and educational attainment; however, economic inequality has allowed wealthy citizens to have privileged access to excellent avenues of education, and thus greater avenues of socio-economic mobility (Mathewson). Therefore, economic inequality proliferates educational inequality. The two neighborhoods I researched in Irvine and Fullerton blatantly show a positive correlation between pecuniary affluence and educational affluence; the wealthier a community is, the richer its education is. For in Irvine – the more affluent community, ninety six percent of the population graduates high school, while in Fullerton, which is significantly less affluent than Irvine, only eighty-six percent of the population graduates.
Thus, persistent inequality in educational attainment is one of the causes of consistent income inequality in Hong Kong. Table 1 and Graph 2 show that children in the richest and upper middle sector had higher chance of getting into university than children in the poorest and lower middle sector, even though there were three educational expansions in the past few decades. Such inequality can be caused by many different factors, but certainly the nature of education in Hong Kong plays an important role on it. The following sections examine nature of Hong Kong education system and explain how it serves for social reproduction more than social
Barker and Kaynak (1992) stated that exporting is economically important to the trading nations and their firms owing to the fact that exports enhance profitability, maximize the capacity utilization, generate jobs, and improve trade balances. Kavoussi (1987) conducted a research study on 73 middle and low-income developing countries, and he found out that higher rate of economic growth is positively correlated with the export growth. He claimed that such correlation remains positive for both middle and low-income nations; however once the countries become more developed, the effect tend to be diminishing. Balassa (1986) and Dollar (1992) argued that the countries that practice outward-oriented developing economies experience a faster growth rate than those practicing inward-oriented developing ones. Coe and Helpman (1995) did a research study about the international research and development (R&D) diffusion among 21 Organization for Economic Cooperation and Development (OECD) countries and Israel over the period of 1971 through 1990.
Education sector is another marked distinction between developed and transitional nations. Developed countries allocate a large portion of budgets for the education sector while developing nations are far behind in this regard. Index of quality and availability of education is much higher in the developed world, and as a result, the level of awareness and the rate of literacy are higher in the developed nations. Though the transitional world is improving in the education sector, yet there is a lot of work to be done. In the area of food security, the developed countries have high nourishment values and abundance of safe and clean water supply, and they supply safe and better quality food to their citizens.
The remedies available include progressive taxation where a person is taxed depending on the rate of one’s earning, meaning the high earning are taxed higher than the low-earning workers. This also needs the legal backing where such majority low-earners are satisfied with the taxing policy- a position that has been adopted in the Ugandan system of Pay As You Earn where the tax is levied off as a percentage by the employer hence no complaints by the employee. Such laws and policies help create more government revenue and lead to a boost in the
South Korea’s economy has grown rapidly over the past 60 years, and now, it retains a high-income economy, one of the reasons being the heavy investment made by the government in education. Currently, South Korea’s market economy is ranked twelfth in the world, partially because of the effective education system implemented. Despite this implementation infringing the personal decisions of the public, the government does have the right to interfere as this has greatly benefited the
• GDP is thought to be the broadest indicator of economic output and growth and offers a better evaluation or measure of economy activity through its changes and growth rate in an economy than any other current measure. Summarizing a vast amount of economic information and establishes the comparative strengths and weaknesses of various sectors within an economy. • Real GDP also takes inflation into account which allows for comparisons against other historical time periods. • GDP is extremely helpful information to economist studies in comparing countries because it is regularly used in different parts of the world. • GDP of course also allows analysts and policy makers to alter, regulate and implement economic policy as they see fit.
(Luistro, 2010) The administration asserts that with the implementation of such program, the problem of unemployment in the country will be resolved. In as much as employment in the Philippines is concerned, the K12 education also responds to the fact that most countries in the world already have the same plan in their educational institutions. With this, the standards of these countries go a notch higher than what the country has, thus, creating an expansion in the
Some argue that SMEs expansion boosts employment more than large firm growth because SMEs are more labour intensive thereby subsidizing SMEs may represent a poverty alleviation tools, by promoting SMEs, individual countries and the international community at large can make progress towards the main goal of halving poverty level by 2020 i.e to reduce poverty by half and becoming among 20 largest World Economies (Nigeria Vision 20:2020). Entrepreneurial development is therefore important in the Nigeria economy which is characterized by the following, heavy dependence on oil, low agricultural production, high unemployment, low utilization of industrial capacity, high inflation rate, and lack of industrial infrastructural base. These constraints limit the rate of growth of entrepreneurial activities in