What are the causes and consequences of income inequality?

The causes and consequences of income inequality are multifaceted. Income inequality is not the inevitable outcome of irresistible structural forces such as globalisation or technological development. Instead, it has largely been driven by a multitude of institutional political choices.

Why is income inequality a global issue?

Income inequality is a global issue with several causes, including historical racism, unequal land distribution, high inflation, and stagnant wages. As gaps increase thanks to crises like COVID-19, the world needs to take action in education, labor market policies, tax reforms, and higher wages. What is income inequality?

What is economic inequality?

Economic inequality, whether measured through the gaps in income or wealth between richer and poorer households, continues to widen. With periodic interruptions due to business cycle peaks and troughs, the incomes of American households overall have trended up since 1970.