Other Factors

Other Factors In addition to abihty, intensity of work, and occupation, other factors affect the inequality of wage earnings. We saw in Chapter 13 that discrimination and exclusion from certain occupations have played an important role in keeping down the incomes...

Occupations

Occupations One important source of income inequality is people’s occupations. At the low end of the scale we find domestic servants, fast-food personnel, and unskilled service workers. A full-time, year-round employee at McDonald’s or at a car wash might...

Intensities of Work

Intensities of Work The intensity of work-varies enormously among individuals. The workaholic may log 70 hours a week on the job, never take a vacation, and postpone retirement indefinitely. An ascetic might work just .enough to pay for life’s necessities....

Abilities and Skills

Abilities and Skills People vary enormously in their abilities-in physical, mental, and temperamental dimensions. However, these personal differ~nces are oflittle help in explaining the puzzle of income dispersion. Physical traits (such as strength or height or girth)...

INEQUALITY IN LABOR INCOMES

INEQUALITY IN LABOR INCOME What are the sources of inequality? The first place we would look for an answer is labor incomes, which account for about 75 percent of factor incomes. Even if property incomes were distributed equally, much inequality would remain. The...

Inequality across Countries

Inequality across Countries Countries show quite different income distributions depending upon their economic and social structure. Figure 19-3 shows th~ inequality of different countries as measured by the Gini coefficient. Market-oriented countries like the United...