The problem of income inequality occupies a high niche in the modern economic agenda of the country. First of all, this refers to the irregular distribution of material wealth among the population. The market economy is based on the fact that income is shared depending on several factors of production, including natural resources, capital and human resources. The degree of their possession characterizes the distribution of income and leads to inequality. Among the main causes of uneven incomes, one can distinguish the difference in the level and quality of education. Moreover, it includes the unequal distribution of property benefits, a noticeable difference in work experience and qualifications, and other vital factors.
Currently, one of the difficulties in overcoming income inequality focuses on the racial wealth gap among population groups. In addition, this figure is increasing, which raises concerns about the future direction of the economy and its stability. Despite the constant struggle against racism, its eradication has been going on for decades (Lee and Lee 556). This becomes the cause of many social problems, including the wages of workers belonging to the people of color. Moreover, this gap is widening due to a number of reasons. First of all, this is manifested in the inequality of the property benefits of the population (Lee and Lee 567). The bulk of the wealth belongs to a relatively small percentage of the population. At the same time, the difference in income does not allow workers to buy good real estate that meets their needs. As a result, the level of decent living among people of different races is clearly contrasting.
Another reason for the gap in the welfare and income of the population is the quality of education and the level of knowledge. On the one hand, education is a conscious choice of an individual who can successfully finish school and go to college for a profession. However, in practice the situation is different and schools in less affluent areas tend to offer children a lower level of education. This affects their ability to enter higher education and continue their studies. In addition, families with low total income cannot afford higher education for their children. Accordingly, they graduate with a school certificate or receive a secondary specialty. The potential in knowledge, both general and narrow, helps one person to take the corresponding position with high earnings. At the same time, others are forced to look for less prestigious jobs, where the employer offers low pay for hard work (Lee and Lee 569). Thus, lack of a diploma reduces their chances of getting a decent job with a good income. As a result, this conducts for generations and people with good salaries can make it possible to provide children with a decent future.
An evenly important cause of income inequality may be global stratification. The idea of the phenomenon is that some countries have obviously more successful social and economic spheres. These aspects include the level of educational institutions, the development of cultural and scientific features of the country, etc (Solt 1189). Some countries have a large level of exports, imports and other means of influence on the world economy. Other states are forced to exist with low state budgets and ever-increasing levels of unemployment. Thus, with an equal level of education and position, the salary of people in different geographical locations can have a significant gap. Furthermore, work experience determines some candidates as more suitable for the position than others. When moving from one employer to another, the first thing a potential employee is asked about is their background in a similar position. In addition, this factor affects the level of wages, as higher skills and qualifications are paid more adequately. Accordingly, a worker who has recently entered the sphere experiences inequality in terms of payments.
Income inequality reinforces the difference between the strata of society, leading to social and economic problems. As a result, the progress of society slows down and there is a clear threat to its stability (Lee and Lee 581). To address the issue, it is important to consider the ways that can help reduce inequities. First of all, the economic agenda should be aimed at raising the real wages of low-paid professions.
In addition, the demands of society are focused on providing decent wages, considering the geographical region of their activities. A system whose mechanisms would be aimed at regulating income in accordance with the territorial characteristics of the country could reduce the existing difference. Such approaches include greater financing of the area and the provision of equal conditions (Solt 1195). A system of taxation based on the direct income of workers will encourage them to perform better at work and enhance their equality with other members of society. Thus, workers will be able to receive more money after paying taxes.
In conclusion, it should be said that the issue of income inequality has not yet been resolved. It remains a significant problem in society and leads to social and economic hardship. Factors intensifying the gap include the level of education, race, qualifications, etc. To reduce social injustice, it is possible to introduce an income-based taxation system. In addition, when distributing salaries, it is important to pay attention to the geographical location of the company and, if possible, gradually increase the budget of a less developed region.
Works Cited
Lee, Jong-Wha, and Hanol Lee. “Human capital and income inequality.” Journal of the Asia Pacific Economy, no. 23, vol. 4, 2018. pp. 554-583. Web.
Solt, Frederick. “Measuring income inequality across countries and over time: The standardized world income inequality database.” Social Science Quarterly, vol. 101, no. 3, 2020. pp. 1183-1199. Web.