This essay aims to identify key elements of income inequality within UK and provide an insight meaning and measurement of income inequality in UK. Also aims to provide detailed explanation of the possible causes of ever increasing income inequality in the UK. This will be done by focussing on the basic microeconomics concepts and principles to examine the the causes of income inequality and try to give solutions to combat these problems. Income inequality is a broad word which includes many sub sectors such as revenue streams from wages and salaries. Income inequality refers to extent to which income distributed in an uneven manner among a population. Income inequality is the key highlight in today's society as we know it today (Wilkinson …show more content…
There are many causes of this problem. Firstly the standard one is inequality in wages and earnings growth so for instance workers with high levels of skills and qualifications in the Uk will be in demand and therefore will be able to gain higher wages however those who have no qualification or with little education will find themselves with lower skilled jobs or no jobs at all and in this case unemployed. In recent years in the Uk the wage differential has increased far more than ever. The reasons for this is that the industrialisation has led to more service sector jobs and these jobs are less paid for example in the UK jobs like door to door sales has risen dramatically the famous example of this is the solar panel door to door jobs. In this sort jobs the employees are paid solely on commission so if they get a sale then they are paid however if they don't they get no money. Moreover public sector jobs have gone down in the UK this means it had low increases in wages. Moreover there has been a real growth in the part time and temporary jobs which tend to be low paid due to it being temporary. In Uk there has been a real decline of trades union. This has had a drastic impact of the workers in the UK leaving many workers unable to bargain for real high wages. Also the skill biased technological changes these include the introduction of machinery so as machinery were introduced the employment prospects of the skilled vs unskilled