Wealth Inequality Essay

Question 1

Introduction

Answer 1

Within this essay, the topics to which are being discussed are low pay and how it doesn’t affect everyone equally, employment versus unemployment, and education versus geography. Ultimately, this essay will argue that low pay is the most significant cause of income and wealth inequalities.

Question 2

Low Pay

Describe

Answer 2

This is when some jobs, such as administrative and social services, do not offer its workers enough pay to keep them outwith poverty long term as they cannot afford to pay their employees enough money to help them survive during the cost of living crisis. Therefore, to escape poverty it is actually dependent on the type of employment someone gains and level of pay they receive.

Question 3

Low Pay

Example

Answer 3

For example, the poverty rate for administrative and social services workers has increased by 4% from in 2011/12 where the poverty rate was 19% to 2023 where the poverty rate is 23%.

Question 4

Low Pay

Analysis

Answer 4

This shows that even with full time employment, individuals can still experience a risk of living in poverty, as they do not get paid the National Living Wage in some occupations.

Question 5

Doesn’t affect everyone equally

Describe

Answer 5

There are certain groups that are affected by low pay more than others, for example young people and single mothers are more likely to find themselves in low paid jobs or part-time work as they do not have the correct qualifications or skills that are required to earn themselves a higher paying job.

Question 6

Doesn’t affect everyone equally

Example

Answer 6

For example, before the pandemic 5.1 million people were in low paid work which disportionately affects BAME and women workers with 18% BAME workers compared to 15% white workers.

Question 7

Doesn’t affect everyone equally

Analysis

Answer 7

This shows that BAME workers are at a disadvantage as they cannot work in a high paying job, due to the many setbacks they face and therefore they are more likely to remain in poverty whilst working in the UK than other groups of workers.

Question 8

Low pay versus doesn’t affect everyone equally

Link Back

Answer 8

Therefore, it is accurate to say that both factors partially cause wealth inequality. However, paid biassed causes the most inequality as low pay doesn’t affect everyone equally as there are specific jobs or types of people that do not get paid enough to find themselves being able to withstand poverty, due to the National Minimum Wage not increasing it met the ongoing rise in costs.

Question 9

Unemployment

Describe

Answer 9

Unemployment means that a person is without paid employment, which can be due to the lack of education or being brought up in poverty. Without having a paying job, the unemployed will struggle to be able to pay bills and support their family by providing food, water, clothes etc, eventually causing them to fall into or remain in poverty, in which they now must rely on benefits to provide money for the household.

Question 10

Unemployment

Example

Answer 10

For example, 50% of the unemployed households are found to be in poverty in comparison to a household where there is a full-time worker, the poverty rate is 10%.

Question 11

Unemployment

Analysis

Answer 11

This shows that those who are unemployed are more likely to find themselves in poverty in comparison to full-time workers, as they do not earn a wage to help keep their household out of poverty, which may be due to them lacking the skills and/or qualifications to help them find work to help improve their living status.

Question 12

Employment

Describe

Answer 12

Those in employment are more likely to not find themselves in poverty as their wage should be enough to help keep their household out of poverty, however there are several employment opportunities that offer the NMW and a variety of hours, but the individuals have remained in poverty due to the pay they receive under the NMW isn’t increasing to match the working poverty rate.

Question 13

Employment

Example

Answer 13

For example, around 2/3 of working-age adults in poverty live in a household where at least one adult is working.

Question 14

Employment

Analysis

Answer 14

This shows that everyone can find themselves in poverty due to the low amount of pay that they receive which may not resonate with the National Living Wage.

Question 15

Unemployment vs Employment

Link back

Answer 15

Therefore, it is accurate to say that both factors partially cause wealth inequality to some extent. However, unemployment causes the most inequality as they are without pay due to their lack of employment, which therefore means that they must rely on other ways to get money, for example benefits, to help with the lack of money coming into their household whereas the employed can use the wage that they earned to help provide for their household.

Question 16

Education

Describe

Answer 16

Educational attainment is when a person gains a skill or qualification from an educational background. If a person is unable to achieve their education due to unfortunate circumstances such as poverty and living in an unstable household, they are more likely to find themselves stuck within poverty as they do not have the qualifications needed to find well-paid employment.

Question 17

Education

Example

Answer 17

For example, over 1 in 10 working-age adults with an undergraduate degree or above are living in poverty compared with more than 4 in 10 working-age adults with no qualifications.

Question 18

Education

Analysis

Answer 18

This shows that even with a degree, people still find themselves in poverty after their time in university, due to the cost of the degree if the person attends university in England or has an English postcode before attending Scottish university as well as the lack of jobs available once they have left university education.

Question 19

Geography

Describe

Answer 19

Depending on where you are born and the careers your parents have, you are depicted into a social class where there are either lots of opportunities easily available for you or there are very limited opportunities around you due to the lack of money found in that area. If you find yourself in an area of higher percentage of poverty, you are more likely to find yourself without a good qualification as there are many struggles you may face which can affect your education, such as cost of living, lack of food etc

Question 20

Geography

Example

Answer 20

For example, Scottish students from poorer backgrounds will have fewer financial concerns about affording university in contrast to English students who may need to take out a loan each year just for tuition.

Question 21

Geography

Analysis

Answer 21

This shows that even though you can come from a poorer background, you can still be able to find pathways into higher education that won’t cause you or your household to fall into poverty, however this doesn’t apply to everyone as the Scottish Government only provides the free education to those having proof that they live in Scotland for a specific period of time.

Question 22

Education vs Geography

Link back

Answer 22

Therefore, it is accurate to say that both factors partially cause wealth inequality to some extent. However, education causes most inequality because without the right qualifications and skills, the person will struggle to find employment with good pay that will help keep themselves and their household out of poverty.

Question 23

Conclusion