Political Economy Economic Systems Questions
Income inequality refers to the unequal distribution of income among individuals or households within a society. It is a measure of the disparity in earnings and wealth between different groups or individuals. Income inequality can be measured using various indicators such as the Gini coefficient, which ranges from 0 (perfect equality) to 1 (maximum inequality). Factors contributing to income inequality include differences in education, skills, employment opportunities, social mobility, taxation policies, and economic structures. High levels of income inequality can have negative social and economic consequences, including reduced social cohesion, increased poverty rates, limited access to education and healthcare, and slower economic growth. Governments and policymakers often aim to address income inequality through various measures such as progressive taxation, social welfare programs, and policies promoting equal opportunities and inclusive economic growth.