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Income inequality is the unequal distribution of income across a population. Poverty is a state where a person is unable to get the resources they need for their income.
Poverty can be measured in two ways: Absolute poverty: When people can't afford basic necessities like food, water, shelter, and education Relative poverty: When a household's income is below a certain percentage of the median income in a country
Income inequality can be measured by five indicators, such as the Gini coefficient and S90/S10. The Gini coefficient is a measure of income inequality among individuals. It ranges from 0 to 1, with 0 representing complete equality and 1 representing complete inequality. Economic inequality is the unequal distribution of income and opportunity between different groups in society. It is a concern in almost all countries around the world.
Some causes of inequality include: Family influence, Inheritance, Differences in natural qualities, and Lack of opportunity.
Income inequality can have a number of negative effects on the future of work, including: Workers may lack the skills to remain employed Government services and programs may face increased pressure Employers and workers may face challenges
Related Test:Economics 101 Practice Test: Earnings and Discrimination
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