income and wealth inequality Flashcards
what is income
a flow of money measured over a given period of time
what is wealth
the sum , or stock of all your assets added together
reasons for differential in income and wealth
age -the older someone is the higher the income as they
are likely to have :
-more skills and are likely to be more productive ,
-more experience so they can demand higher wages
-wealth accumulation can be greater
education(distribution of income)
the more qualifications some has (alevels and degrees) the greater the earning potential of that individual is likely to be
ownership of financial assets -through employer pension ,bonds.
unequal distribution ,those who own them will be better off than those who don’t (bonds)
ownership of property(housing)
Those who own property will be wealthy as prices go up lead to divide in the distribution of wealth compared to those who can’t afford it
wage differentials (distribution of income)
The greater the wage differentials the greater the inequality of the distribution of income will b e(role of state benefits here)