This paper will have details on how a country can measure income inequality. The paper will have details about how unemployment and economic growth effect of income inequality on the U. S. economy; guesstimate the gap of degree holder and those that do not.
Gaps that lay between the educated and non-educated workers with telling if higher education opportunities increase will reduce income inequality. Last give an opinion of other jesters U. S income inequality to widen. Money and crime is a big problem therefore higher education stent for the unprivileged.
Measure Income Inequality
Measurement of a country income inequality according to Amacher & Pate, the Gini coefficient is a mutual amount of income inequality. Income inequality is what tells the slit with money and the others. Since Gini coefficient usually have a series from 0 to 1. 0 is having the equal income and 1 is when one individual brings in the income as a culture. A better explanation of this is the Gini coefficient have the numbers among 0 and 1 but there is also a Lorenz curve which is a perfectly equal income with persons with the same income and is not guaranteed.
The effects of income inequality in the U. S. starting with unemployment. The explanation of unemployment is simple if one do not have a higher education most likely joining the unemployment community is probably going to happen. It is said in most poorer households the income and employment is low whereas the unemployment rate is high. In research it shows people of color have high unemployment rates due to higher education is just not in the household numbers.
The poorer households income statics sometimes do not allow their children to get an education more less a higher education so that leads to just a job then follows the known not working or the street of thug life or the line to unemployment. Now according to Strauss (2011) based on the recession, “ the lowest unemployment rate being 7%, and the highest reaching 15%. If you have a four-year college degree and at least some graduate school, recessions have been mild — with current unemployment rates of 4.5%, compared to an overall rate of 9%” (Strauss, 2011, November 2, para. 4).
Growth explanation comes with spending in the economy. Buyers buying items help grow the economy in doing so it said that during the recession the expenditure failed by 70 percent. When the growth got reinstated over the years 5 percent of income was reported. “ Households making more than $166,000 a year”( Fletcher, 2014, January 24).
Just know at the end of the day if growth is wanted spending has to happen but employment is a must therefore more jobs in the economy is needed because everyone cannot live off inheritance, a demand have to be in play. “ incomes diverged between 1980 and 2007, with those at the bottom seeing annual increases of 2.6 percent, while income growth for the top 5 percent accelerated to 5 percent a year”( Fletcher, 2014, January 24).
Some of the other factors that fall under income inequality is workers not getting paid enough and things such as contracting jobs out. For example look at the nursing community, they have traveling nurses come in and paid them top dollar and some employers will not pay their full time workers overtime or holiday pay wanting to save money. Not to mention the discrimination, it was a problem back in the day but it is still a front factor today. “Government can help combat discrimination both with antidiscrimination laws and with equal treatment for government employees regardless of race or sex” (Amacher & Pate, 2019).
The gap for bachelor and higher holders versus those without. First it start with trying to get a job, and it is a selected few to choose from that will hire without a higher education. The pay is even different from having a high diploma to have a bachelor degree although it is successful candidates that made millions who dropped out of college but there are many frauds who has higher education.
The studies not 100 percent right but common sense tells the story that higher education get better job opportunities in turn invest in their children prepare for a higher education but the gap lapse because the poor cannot help the poor but help lift each other up or a miracle come through. Now the government could step in and get more involved to help with a better education plan for the less fortunate.
As stated by, Gould, “The workers with the credential that should be in high demand—four-year college graduates—have not done that well. Workers with a four-year college degree saw their hourly wages fall 1.3 percent from 2013 to 2014, while those with an advanced degree saw an hourly wage decline of 2.2 percent” (2015, February 20).
Conclusion of this matter, After measuring a country income inequality and the effects such as unemployment, economic growth, and other economic gaps between higher educators and those of none. The Gini coefficient is the known to find the income inequality although it is other ways to do so. With income inequality monitoring households in all communities the gap that lay between the educated and non-educated workers the money and crime being a big problem helping getting education and even a higher education for the unprivileged will close that length between.
Amacher, R. and Pate, J. (2019). Principles of microeconomics (2nd ed.). Retrieved from https://content.ashford.edu
Choi, K. P. (2016, May 30). Income inequality and the earnings gap between educated and non-educated workers (Links to an external site.)Links to an external site. [Blog post]. Retrieved from https://www.ashford.edu/blog/career-tips/income-inequality-and-the-earnings-gap-between-educated-and-non-educated
Fletcher, M. A. (2014, January 24). Income inequality hurts economic growth, researchers say (Links to an external site.)Links to an external site.. The Washington Post. Retrieved from https://www.washingtonpost.com/business/economy/income-inequality-hurts-economic-growth-researchers-say/2014/01/24/cb6e02a0-83b0-11e3-9dd4-e7278db80d86_story.html?noredirect=on&utm_term=.fef6d29b2199
Gould, E. (2015, February 20). Even the most educated workers have declining wages (Links to an external site.)Links to an external site.. Retrieved from https://www.epi.org/publication/even-the-most-educated-workers-have-declining-wages/
Sherman, E. (2014, Dec 9). Income inequality hurts economic growth (Links to an external site.)Links to an external site.. Forbes. Retrieved from https://www.forbes.com/sites/eriksherman/2014/12/09/income-inequality-hurts-economic-growth/#5070548f591a
Strauss, S. (2011, November 2). The connection between education, income inequality, and unemployment (Links to an external site.)Links to an external site.. Retrieved from https://www.huffingtonpost.com/steven-strauss/the-connection-between-ed_b_1066401.html