The Review of Income Equality: Definitions, Causes and Consequences

The wealthiest 20% of the United States population make up over 20% of the country's income, while the bottom 20% constitute up less than 20%. Income inequality may lead to many severe questions like peoples health and violence. Should income inequality be of concern to countries? Does the impact of wage disparity vary by country? The paper surveys the determinants of income inequality and synthesizes a vast body of literature on the factors that can influence the inequality of income. The whole passage categories determinants into (1)definition, (2)cause, and (3)consequences. The paper highlights the importance of income inequality and focuses on its effects on different aspects. After discussing various dimensions of the picture, we conclude that income inequality can be severe in some countries, thus affecting the operation of the economy, while there are some solutions to mitigate the harm it causes.