Gladys MaguadGracel Joanne DocdocilMarion Louis DenilaBSAct 2-1

INCOME INEQUALITY

•The unequal distribution of household or individual income across the various participants in an economy.

•Income inequality in the Philippines is the extent to which income, most commonly measured by household or individual, is distributed in the Philipipines in an uneven manner.

MULTIPLE ROOTS OF INCOME INEQUALITY

•HEALTH – If people are not healthy they will not work to their full productive capacity.

Ascertaining whether inequality is a direct cause of ill health (as opposed to merely being correlated with it) is difficult.

•EDUCATION – if children are less successful at school, they are less likely to become highly skilled workers. Their productive capacity of the economy is diminished.

•POLITICAL – Philippines’ political culture is dynastic in nature, meaning local officials are often related to each other by blood. Rampant graft and corruption maintains a society that discriminates against the poor in favor connected individuals and businesses.

WHY IS IT A PROBLEM?

•The rise of income inequality and wealth inequality are intimately connected. And causes all sorts of problem over the long term.Income inequality has a snowballing effect

on the wealth distribution: top incomes are being saved at high rates, pushing wealth concentration up; in turn, rising wealth inequality leads to rising capital concentration, which contributes to further increasing top income and wealth shares.

THE CAUSES OF INCOME INEQUALITY VARYS SIGNIFICANTLY TO THESE FACTRORS

•Region•Gender•Education•Social status•Economic growth

The positive effect of income inequality in our society

•Their will be also rich people.•By them they can give jobs opportunities

from their business.

The negative effect of income inequality in our society•Reduction of economic growth•The gap between the richest and poorest•Correlation between income inequality

and economic growth

SOLUTIONS FOR INCOME INEQUALITY

•Make high-quality childcare available to all

•  Tackle polarized pay•  Create good jobs around the country•Transform jobs into careers with

better training•Fairer taxes

STATISTICAL UPDATES

Update:The National Statistics Office (NSO) is conducting

the2012 Family Income and Expenditure Survey (FIES), which aims to gather data on family income and family living expenditure and related information affecting income and expenditure levels and patterns in the Philippines.

The Gini coefficient of the income of families in the country in 2009 was estimated at 0.448.  Among the regions, income inequality is highest in Region VIII (Eastern Visayas) with a Gini coefficient of 0.484.  On the other hand, excluding the ARMM, income inequality is lowest in Region III (Central Luzon) with a Gini coefficient of 0.373.