Title: Inequality - equity | Economics Online | Economics Online
Headings: Equity and inequality
Equity and inequality
Equity and inequality
Inequality of outcome
Inequality of opportunity
Does inequality serve a purpose?
Measuring inequality of income
The Lorenz curve
The Gini co-efficient and index
The S80-S20 ratio
Equity and efficiency
Causes of inequality of income
Business Economics
Explaining The K-Shaped Economic Recovery from Covid-19
Does Public Choice Theory Affect Economic Output?
Largest Retail Bankruptcies Caused By 2020 Pandemic
Identifying Speculative Bubbles and Its Effect on Markets
Explaining The Disconnect Between The Economy and The Stock Market
Consumer Confidence Compared to Q2 Job Growth
Global Affairs
Alternatives to GDP in Measuring Countries
Multiplier Effect

Content: For example, welfare payments help narrow the gap between rich and poor, but they may create moral hazard and produce a disincentive effect, so that welfare recipients remain dependent on welfare payments into the long run. This is known as the equity-efficiency trade-off. Causes of inequality of income
There are several possible reasons for the widening gap between rich and poor in the UK, including: The increased labour market participation of married females, greatly adding to the incomes of married-couple households. Single parents, who constitute a large share of the lowest quintile, have done proportionately badly as benefits have not kept pace with earnings – benefits are linked to inflation, not to average earnings. The same is true for the increasing numbers of low paid pensioners. The wages of skilled workers have risen in comparison with unskilled. Trade union power has been eroded which, along with the abolition of Wage Councils in 1993, has meant that protection for low paid has decreased. The rise of the ‘unofficial labour market’ means that there appears to be a growing number of low paid immigrant workers, who work for cash and are paid much less than the national minimum wage. A reduction in the level of progressiveness of the tax and benefits system, which occurred from the early 1980s.