Income inequality determined by the uneven distribution of wealth.In a market economy, the distribution of income is happening in the markets of various factors of production: capital, natural resources and labor.Depending on the extent of owning these types of resources and the redistribution of wealth, causing income inequality.Among the main causes of this phenomenon are the following:
- different distributions of property.This is the most fundamental reason for this inequality.It is a consequence of the fact that the creation of wealth of any kind (and hence income) are necessary means of production on a large scale can be established factories, in fine - until the working tools.Anyway, the original private ownership of the means of production and the uneven distribution of the population are the causes of income inequality.As a trivial example may be the initial difference of starting opportunities offspring oligarchs who receive large sums of capital reproduction in the inheritance, and heirs of average citizens.And if it is a negative feature of the capitalist system, most of these reasons stem from individual qualities.
- different abilities.It is no secret that people have a great intellectual and physical abilities.Someone possessing exceptional physique, implements them in the sports industry, someone good in the financial sector and so on.These features lead people in different spheres of public life, each with its average level of earnings and the ceiling.
- Different levels of education.Aside from individual abilities, people have differences in education.The crucial difference this reason from the previous in that the level of education is often the result of a conscious choice of each person (not always, but usually it is).Of course, having a larger supply of professional and general knowledge, and a better chance to realize their own work more profitable, will be followed by income inequality.
- different professional experience.In today's domestic labor market is very highly regarded professional experience.Usually, in practice it means lower wages for young workers and increase its professional growth and the accumulation of experience.
- Income inequality can generate some additional factors.Such as the success or failure access to valuable resources and so on.
income inequality.Lorenz curve
For graphic degree of inequality in society, economists use Lorenz curve Otto.It is an image of the distribution function of income, which accumulates all the numerical proportion of the population and income.That is, it displays a specific category of income of the population relative to its population.
income inequality and its consequences
Among the consequences of this phenomenon are distinguished economic and social.The former, for example, is the increasing stratification of populations: that is a small amount of the population is concentrated in his hands all the more resources, selecting them from the poor.The result is dissatisfaction in society, social tension, riots and so on.
