PowerPoint Presentation
INCOME INEQUALITYBalbon, MekhaAlfane, Ritz Dale Pamulag, Gem
DefinitionCausesEffectsPeople InvolvedRemediesStatistics
1
What is Income Inequality?
it refers to the extent to which income is distributed in an
uneven manner among a population.
2
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 inequalityInnate
AbilityEducationComputerizationGender, Race
&CultureGlobalization
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.
The existence of different genders, races and cultures within a
society is also thought to contribute to economic inequality.
GENDER, RACE AND CULTURE
Trade liberalization may shift economic inequality from a global
to a domestic scale.GLOBALIZATION
effects of income inequalityECONOMIC GROWTHPOVERTYPOOR
HEALTHCRIME OR VIOLENCE
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. POVERTY
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 GROWTHAs 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 HEALTHInsufficient 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
unemployedthe underemployedthe sick and disabledthose with poor
qualifications or low skillsthe elderlythose working in the
unofficial labour market where pay below the legal minimum
Remedies:Progressive Taxes: tax the richer at higher% rate than
poorWelfare tranfers to the poorMass education: increase supply of
skilled labor Subsidize essential goods and services
Spend tax payers on schoolsTax Wealth Minimum wage legislation-
to raise the income of the poorest working groupRemedies:
https://psa.gov.ph/content/2006-family-income-and
-expenditure-survey-final-results
Income inequality data from the Family Income and Expenditure
SurveyThank You! God bless
