Income And Wealth Inequality Definition

Income inequality is often accompanied by wealth.

Income and wealth inequality definition. The share of income going to different groups in society e g. Wealth represents your total net worth. Income represents how much you earn in a given year both from work and from the yearly return on your investments. The poorest 20 of households at the bottom of the income scale through to the richest 20 the proportion of all households who live on an income below an official poverty line.

The level of inequality of income and wealth can be measured in several ways. Income inequality only matters insofar as it effects wealth inequality anyhow. It affects and is affected by many other forms of inequality such as inequalities of wealth political power and social status. Income inequality our wealth is all our possessions including cash we have at home money in the bank shares bonds property vehicles etc.

Income inequality is a major dimension of social stratification and social class. While the concepts are similar income inequality and wealth inequality have some key differences. While income figures suggest that the gap between the rich and the poor is expanding these figures may be misleading. The less equal the distribution the higher income inequality is.

Our income on the other hand is the flow of money we receive such as our salary bonuses and share dividends. And if we re not careful focusing on income inequality can lead us astray from the larger goal of creating a fairer.