Economic Inequality

Equality, like fairness, is an important value in most societies. Irrespective of ideology, culture, and religion, people care about inequality. Widening inequality also has significant implications for growth and macroeconomic stability, it can concentrate political and decision making power in the hands of a few, lead to a suboptimal use of human resources, cause investment-reducing political and economic instability, and raise crisis risk. The economic and social fallout from the global financial crisis and the resultant headwinds to global growth and employment have heightened the attention to rising income inequality.
The impact of trade on the level and distribution of income has been a topic of considerable debate among academics and

The remainder of this paper proceeds as follows. Section 2 reviews the existing literature on the impact of trade on income inequality. Section 3 introduces the data set and methodology, and provides the statistic results, both with a descriptive and empirical analysis. The concluding section summarizes the main findings and indicates possible policy

In general, this refers to the income gap between the rich and the poor. Firstly, it is necessary to distinguish between what is called absolute poverty and relative poverty or income inequality. Absolute poverty is where people do not have sufficient access to food, shelter, and clothing to provide a basic level of physical and mental development. Absolute poverty levels can be compared across countries. Relative poverty is an income inequality measure whereby an arbitrary income level is set as the level below which people in the particular country are considered to be poor. When analyzing income inequality, there are two main categories which may seem similar but in reality have very different meanings. The first one is the income inequality within a country which is usually measured with the Gini Index. The second one is the income inequality between countries which is measured as the difference in National Income. This paper will mainly focus on intra-national income inequality.
There is no doubt that between the richest and the poorest countries the gap in average incomes has been widening. However, within developing countries, research has not been able to find any systematic relationship between economic growth and changes in income inequality. In fact, income inequality within developing countries largely appears to be stable over time. In high-income countries, there appears to have been increasing inequality