Inequalities

Question 1

2 measures of inequality

Answer 1

1. Global differences- Difference between richer countries + lower income countries and whether the difference is increasing or decreasing e.g Intrnational movement of labour and outsourcing
2. Internal differences- The inequality in income that exists within each country e.g Gini coefficient Index

Question 2

Gini coefficient index

Answer 2

Gini index is used to measure + indicate levels of income distribution within a country (wages)
* It aggregates the inequality in people income into a single measure with a coefficient score between 0 and 1.
* A score 1 means a countries entire income goes to 1 person, 0 means everyone earns the same amount
* Difference in national income equality

Question 3

Criticisms of Gini coefficient Index

Answer 3

• Too simplistic
• Only address inequalities of wealth/ limited factor opposed to absolute national + personal incomes
• Rates poor and rich countries as having the same coefficient eventhough the services provided each country vary substantially
• Doesnt consider disposable incomes- remaining money after tax dedection spent on wishes
• Map doesnt indicate the actual amount of money

Question 4

International movement of labour

Answer 4

+Reduced unemployment in countries where there is a lack of work- opportunities to seek work elsewhere
+Reduces geographical ineualities between workers (for example, Eastern Europeans working in the UK)
+Addresses important skill amd labour shortages (e.g UK has recruited nurses from the South East of Asia)
+Some workers return to their country of origin with new skills and new ideas
-Countries find it difficult to retain their best talent- attracted away by higher income in other countries
-Loss of skilled workers in some countries causes a training gap
-Outsourcing of production from high-wage to low-wage economies causes unemployment in more developed countries (e.g. deindustrialisation in the north of England led to high rates of unemployment there)
- With greater movement of labour there is greater risk of disease pandemics (e,g COVID)

Question 5

Outsourcing

Answer 5

A one directional practice taking manufacturing or service jobs from high wage economies in Europe and North America and having them undertaken by sub-contracting organisations in lower wage economies e.g China
_ Loss of jobs- Knock-on effect on communities, one large employer has outsourced. Unemployment means theres less spending in local economy so service workers e.g shop keepers loose their jobs and shops close down
-Structural unemployment- Skill set of local workers is no longer compatible as they trained for have now moved abroad. they are often ill equipped for new type of work that enters