What is inequality and
what are the different
forms of inequality?
Answers
Answer:
The Equality Trust’s Focus on Economic Inequality
Economic inequalities are most obviously shown by people’s different positions within the economic distribution - income, pay, wealth. However, people’s economic positions are also related to other characteristics, such as whether or not they have a disability, their ethnic background, or whether they are a man or a woman. While The Equality Trust recognises the importance of these measures, the focus of our work is specifically the gap between the well-off and the less well-off in the overall economic distribution. This is reflected in the choice of terms and statistics in this section.
There are three main types of economic inequality:
1. Income Inequality
Income inequality is the extent to which income is distributed unevenly in a group of people.
Income
Income is not just the money received through pay, but all the money received from employment (wages, salaries, bonuses etc.), investments, such as interest on savings accounts and dividends from shares of stock, savings, state benefits, pensions (state, personal, company) and rent.
Measurement of income can be on an individual or household basis – the incomes of all the people sharing a particular household. Household income before tax that includes money received from the social security system is known as gross income. Household income including all taxes and benefits is known as net income[1].
2. Pay Inequality
A person’s pay is different to their income. Pay refers to payment from employment only. This can be on an hourly, monthly or annual basis, is typically paid weekly or monthly and may also include bonuses. Pay inequality therefore describes the difference between people’s pay and this may be within one company or across all pay received in the UK.
3. Wealth Inequality
Wealth refers to the total amount of assets of an individual or household. This may include financial assets, such as bonds and stocks, property and private pension rights. Wealth inequality therefore refers to the unequal distribution of assets in a group of people.
How is Economic Inequality Measured?
There are various ways of measuring economic inequality. The choice of measure does not change what inequality looks like dramatically[2]. However, changes in inequality over time within individual countries can look different if different measures are used[3][4].
Answer:
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➽There are five systems or types of social inequality: wealth inequality, treatment and responsibility inequality, political inequality, life inequality, and membership inequality.