INCOME

Definition
INEQUALITY
Causes

Effects
People Involved
Remedies
Statistics
Balbon, Mekha
Alfane, Ritz Dale
Pamulag, Gem

What is Income Inequality?

- it refers to the extent to which

income is distributed in an uneven
manner among a population.

The study noted that the Philippines registered a Gini

coefficient of 44 percent last year, higher than Thailands
42.5 percent, Indonesias 39.4 percent, Malaysias 37.9
percent and Vietnams 37.8 percent

Gini coefficientis ameasure of statistical

dispersionintended to represent the income
distribution of a nation's residents, and is the most
commonly used measure of inequality

Inequality isnt just about the inability of some to

afford finer things in life. Research suggest that a
wide gulf between incomes can have more pernicious
effect, such as increased feelings of
disenfranchisement, fewer opportunities for
advancement, and increased poverty.

Causes of income inequality

Innate Ability
Education
Computerization

Gender, Race &Cultur

Globalization

Innate Ability

Many people believe that differences

in ability, such as intelligence,
motivation, strength, or charisma, are
largely innate and play a significant
role in determining an individual's
wealth

EDUCATION
Income differences between the
varying levels of educational
attainment (usually measured by
the highest degree of education
an individual has completed) have
increased.

COMPTUTERIZATION/
INNOVATIVE
TECHNOLOGY

This resulted in a rightward

shift in the Demand for
Skilled Labor Supply, and
this created an increase in
the relative wages of the
skilled compared to the
wages of the unskilled
workers. Such a change in
wages added to the inequality
that was already present.

GENDER, RACE AND CULTURE

The existence of different genders, races

and cultures within a society is also thought
to contribute to economic inequality.

GLOBALIZATION

Trade liberalization may shift economic

inequality from a global to a domestic scale.

effects of income inequality

POVERTY
CRIME OR
VIOLENCE
ECONOMIC GROWTH
POOR HEALTH

POVERTY

It is one of the effects of the income

inequality because laborers received low
income salaries that cannot satisfy their
daily needs. Many uneducated people
experience poverty because of their lack of
education and professional merits.

CRIME OR VIOLENCE

This is common in
societies where income
differences are larger.
People tend to commit
crimes because of their
desire to sustain their
diminishing incomes and
to satisfy their wants.

ECONOMIC GROWTH
As long as the
poverty rate
increases, it will
cause to the sudden
loss of income that
will affect the
economic growth of
the society.

POOR HEALTH

Insufficient income
in the society will
cause great problem
to organizations that
provide needs to
those who are needy
especially in
HealthCare
departments.

Who are likely to receive less

than average income?
the unemployed
the underemployed
the sick and disabled
those with poor
qualifications or
low skills
the elderly
those working in the unofficial
labour market where pay below the
legal minimum

Remedies:
Progressive Taxes: tax
the richer at higher%
rate than poor

Mass education: increase

supply of skilled labor
Subsidize essential goods
and services
Welfare tranfers to the
poor

Remedies:

Spend tax payers on schools

Tax Wealth
Minimum wage legislationto raise the income of the
poorest working group

https://psa.gov.ph/content/2006-family-income-and -expenditure-survey-final-results

Income inequality data from the Family

Income and Expenditure Survey

Thank You! God bless