Briedly discuss the major causes of income inequality. What factors have contributed to greater income inequality since 1970?
There are many reasons that are ascribed to cause income inequality and the reasons vary by the country. In the case of the US, which has the most unequal distribution of income amongst developed countries as measured by the GINI coefficient, some of the most important reasons are educational differences and family structure.
Education is an obvious culprit since higher educated people are in general expected to earn more. The problem is that this effect has been accentuated in the last 2-3 decades with the decline of American ...
Reasons for income inequality are included.