Title: Income Inequality and the Earnings Gap Between Educated and Non-Educated Workers | UAGC
Headings: Income Inequality and the Earnings Gap Between Educated and Non-Educated Workers
Income Inequality and the Earnings Gap Between Educated and Non-Educated Workers
How Does Income Inequality Affect the Economy?
Why Has the Income Inequality Gap Between Educated and Non-Educated Workers Been Widening?
Can More or Better Education Reduce Income Inequality?
Conclusion

Content: As those non-educated workers become poorer, they have difficulty sending their children to college. Some economists claim that if our society can produce more college-graduating workers, income inequality between educated workers and non-educated workers may be reduced. How can it be possible? How Does Income Inequality Affect the Economy? According to the Organisation for Economic Co-operation and Development (OECD) report, income inequality has been increasing in most OECD countries during the past 30 years (OECD, 2014). The Gini coefficient, a measure of income inequality (0 means perfect income equality and 1 means perfect income inequality), was 0.29 in OECD countries in the mid-1980s but went up to 0.32 in 2011/2012 (OECD, 2014). The Gini coefficient for the United States was 0.403 in 1980 and 0.468 in 2011, which were higher than other OECD countries. The OECD analysis shows that income inequality has “a negative and statistically significant impact on medium-term growth” (2014, p. 2). Several economists claim that income inequality hurts economic growth, economic and financial stability, and productivity and economic efficiency (Fletcher, 2014; Sherman, 2014).