Income inequality. Another association/relationship to be tested by this research is between income inequality in Kuwait and economic growth. It has been argued that inequality is unfair, yet unavoidable precondition for growth. This is on the basis that inequality is necessary for the accumulation of wealth and that it therefore contains the seeds for eventual increase in everyone’s income.153 The argument is on the basis that in ‘trickle down’ economic theories, societal acceptance of inequality allows the rich to accumulate wealth faster. Some of the accumulated wealth is then redistributed, making everybody better off. On this basis Xxxxxx investigated the impact between inequality and growth.154 His findings suggest that inequality is negatively and significantly associated with growth. That is to say, inequality discouraged growth. Similarly, Xx investigated the effect of income inequality on economic growth by trying to establish whether the transfer channel or human capital channel had the most 141- 154 Xxxxxx, X.X.X. (1995), ‘More evidence on income distribution and growth’. Journal of Development Economics, 47, 403-427. impact of economic growth. 155 Mo concluded that income inequality has a significant negative effect on the growth rate. In another study, Xxxxxxxxxx re-examined various dimensions of the growth-inequality debate in the specific context of countries undergoing transition from centrally planned to market systems.156 While at the beginning of the transition these countries shared many similar characteristics and, specifically, had low levels of income inequality, over time they diverged considerably. Hence, the transition economies provided a potentially rich environment for examining the relationship between income inequality and growth. He applied the various different specifications and estimation methods that had been employed in the literature on inequality and growth to arrive at very different conclusions, even with the same data sets. In contrast to the conflicting results obtained in the earlier studies, that had included at most only three transition economies, his empirical findings for transition countries indicated a strong, negative contemporaneous growth-inequality impact for all these specifications, estimation methods, and different inequality data sets in the short to medium run. Xxxxxx, on the other hand, challenges the belief that income inequality has a negative impact on economic growth.157 He used an improved data set on income ...
Income inequality. 3.2.1 The multiple between lowest paid employee and highest paid employee
Income inequality. Gini Coefficient of Income Inequality Those in Need Not Receiving Assistance Those in Need Receiving Assistance Source: US Census American Community Survey 2008. Proportion of the population with income below poverty level and was receiving public assistance. In 2008, less than one third of people living in poverty in our region Dutchess Orange Xxxxxxxx Ulster 0.42 0.40 0.43 0.43 0.00 0.50 1.00 received some type of public assistance. Many households in our region required food stamps to pay for the food they needed to feed their families. Approximately 19,500 Source: US Census American Community Survey 2008 The Gini Index is a measure of income inequality. A Gini score of 0 represents perfect equality: all income is distributed equally across all households. A Gini score of 1 represents perfect inequality: all the income is earned by only one household. Nationally, the Gini Index was .47 in 2008, just under the midpoint. In our region, it ranged from .40 in Orange County to .43 in both Xxxxxxxx and Ulster counties. That is, income was somewhat more evenly distributed here than it was nationally. Minority Experiences Members of racial minorities experience our communities differently than do others. There are racial inequalities in educational, employment and income outcomes. region (48%), volunteered their time in the past year. On average, people volunteered 90 hours a year, that is, about 7 ½ hours per month. Volunteerism Region 52 % 48 % 33% 30% 22% 21% 17% 14% 13% 13% Volunteers Does not Social or Community Educational or Youth Services Religious Region White Non-white Education No College Degree 71% 70% 76% College Degree 29% 30% 24% Employment Not Employed 6% 5% 10% Employed 95% 95% 90% Poverty Income Below Poverty 10% 9% 14% Income Above Poverty 90% 91% 86% Source: US Census American Community Survey 2008. 2008 Employment data for the region is from NYS Department of Labor. In 2008, while 30% of white residents age 25 or older had a college degree, this proportion was 24% for non-white residents. Sport, Hobby, Cultural, or Arts Civic, Political, Professional Hospital or Health Care Environmental or Animal Care Public Safety 0% 25% 50% The unemployment rate for white residents was 5%, whereas one in ten non-white people in the labor force were without a job. The poverty rate for white residents was 9%, in contrast to 14% for non-white residents in our region. Volunteerism According the March 2010 Siena Institute survey, nearly half of the residents ...
Income inequality. The most obvious way to examine inequality is in its base form, the underlying disparity of wealth which perpetrates and promotes disparities in other areas of society. In China, income inequality is not only a baseline cause for broader social inequality, but it is one of the most unequal comparisons that can be drawn, and the line of income variation is defined starkly along urban/rural parameters. Because income inequality and personal wealth are generally considered to be a major determinant in the average quality of material life, education, and healthcare in most countries, it is essential that efforts to reign in inequality in these areas and throughout the broader social spectrum of Chinese disparity, be first and foremost focused on narrowing the general income gap. The income gap between china's rural poor and relatively better-off urbanites exploded during the 1980's and 1990's following economic reforms specifically targeted toward economic growth in coastal manufacturing and export regions. As noted by Xxxxxx Xxxxxxxx, et al., "It should come as no surprise that inequality rose as China moved from an ostensibly egalitarian socialist economy to a more market-oriented one. What is striking is how high inequality has become.14 The creation of Special Economic Zones (SEZs) ensured that initial growth was localized and subsequent development zones have continued to ensure that the vast majority of higher economic activity revolves around coastal urban centers. The trend has continued in this direction, with attempts by the central government to
Income inequality. The Parties will work towards reducing the income gap, ensuring fair wages, and promoting economic opportunities for Black Georgians.
Income inequality definition and indicators Rising income inequality is a global concern, implying that economic growth is not inclusive and its benefits are not equally distributed to all households [15]. Income inequality can reduce economic growth and aggregate demand, as those on high incomes typically have a lower marginal propensity to consume [16, 17], while it raises concerns about sustainable growth as the gap between rich and poor widens [18]. Income inequality is defined as inequality in earnings received from employment (wages, salaries, bonuses, self-employment earnings), private income from investments and property, transfers between households, state benefits, pensions and rent [19]. Income inequality describes the gap between the rich and poor segments of society and is often measured through households’ disposable income. The standard representation of household income in GEM-E3-FIT is through a single “representative” household in each region that averages incomes and consumption patterns. This approach assumes that all forms of income, both from primary resources (i.e. labour and capital ownership) and institutional transfers (pensions, property income, interest rates, foreign transfers, etc.), are allocated to a single representative household, thus not allowing for an assessment of policy impacts on different households within a country. The drivers of income inequality are widely discussed in the literature. A comprehensive review on drivers of income inequality is included in [20]: • Changes in labour market, which directly impact unemployment and the distribution of wages. Part-time and temporary employment negatively impact income inequality, which is reinforced by the gender gap in wages and high unemployment of younger generations [21]. The increased flexibility of the labour markets poses challenges for workers, especially those with low skills, who are commonly the first to be substituted, thus worsening income inequality. • Labour institutions, which may lead to reduced wage dispersion, but they can also result in higher unemployment [20]. Literature findings show that trade union membership and days of maternity leave have a positive effect on income distribution. • Technological change, which increases productivity and well-being, but also requires higher skilled labour thus contributing to increased inequality, in case that the pace of technological change is higher than the pace of educational development. Technology progress driven by digi...
