What Are The Causes Of Inequality

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To understand the causes of inequality one must first know what inequality is. Inequality is the extent to which income is distributed unevenly in a group of people. It is the disproportionate ownership of resources between different sections of the society. Inequality is typically thought of as differences between individuals within a population, normally a country, though it can also be considered for smaller or larger populations. Thus it is important to consider inequality between groups of people, including global inequality between countries, inequality between regions or communities within a country, and inequality between groups of individuals or households classified according to various criteria (for example gender, class). Inequality…show more content…
For unskilled workers, computers and machinery perform a lot of tasks these workers used to be do. In many jobs, such as packaging and manufacturing, machinery works even more effectively and efficiently. Hence, jobs involving repetitive tasks have largely been eliminated. Skilled workers are not immune to the nightmare of losing jobs. The rapid development in artificial intelligence may ultimately allow computers and robots to perform knowledge-based jobs. The impact of increasing unemployment is stagnant or decreasing wages for most workers, as there is a low demand for but high supply of labour. A small portion of society, usually the owners of capital, controls an ever-increasing fraction of the economy. The income gap between workers who earn by their skills and owners who earn by investing in capital has widened. Although both skilled and unskilled workers are adversely affected by the technological advance, it seems unskilled workers are subject to worse outcomes. This is because the labour market may still need skilled workers to use computers and operate the advanced machines. The rightward shift in the demand for skilled labour creates an increase in the relative wages of the skilled compared to the unskilled workers. Hence, the income gap among workers also has
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