Outline the causes of income inequality in the UK and evaluate the

Outline the causes of income inequality in the UK and evaluate the Outline the causes of income inequality in the UK and evaluate the measures that could be used by the UK government to achieve a more equal distribution of wealth â€" Essay Example > Income Inequality in the United Kingdom Introduction Welch (2001) defined income inequality as a situation whereby there is unequal allocation of individual or household incomes across different individuals in a given economy. Income inequality is therefore a situation whereby the rich people in a country earn more income compared to the other population hence increasing the gap between the poor and the rich. The causes of inequality usually vary depending with the state, gender, social status, region, and education of individuals in the society. This paper is going to outline the causes of income inequality in the UK and evaluate the measures that could be used by the UK government to achieve equal distribution of wealth. Causes of income inequality Stiglitz (2012) stated that the main causes of income inequalities in the UK are low wage rate amongst a certain class of workers and unemployment. In regards to the issues of low wage rate amongst a certain class of citizens, Stiglitz (2012) stated that the gap between the poor and the rich widens when the employees are forced to use all of their income just to feed their families and hence, leaving them with nothing to save for investment purposes. Unemployment is also another major cause of income inequalities in the UK because the people who are not engaged in any form of business or job, rarely earn an income while the rich own businesses that provide them with high incomes hence creating a gap between them. In the writings by Parker (2004), she cited education also another causes of income inequalities since individuals who are learned and educated get opportunities to work for well paying organizations, while the illiterate or less educated lack similar opportunities since they lack the documents to prove that they have the knowledge and skills necessary for high paying jobs. Chen and Zhou (2004) on their part stated that the causes of income inequality could be divided into individual and national causes. The individual causes include the ownership of resources, motivations, family size, qualifications, and skills (Parker, 2004). The national causes include economic power, climate and the size and quality of labor force. Measures to reduce income inequality The government of the UK should formulate policies to reduce the income gap between the rich and the poor by ensuring that all the individuals who are working in various organizations are paid good salaries that will enable them sustain their families and save part of their income for investment purposes. The government should motivate the poor who are unemployed by providing working opportunities for all without discrimination and encouraging them to use their talents, skills, and creative ideas to start their businesses in order to reduce the rates of unemployment in the UK. The fees paid in schools should be affordable to ensure that people are educated to make them have better incomes when they start working (Welch, 2001). Conclusion Income inequality is a state whereby the rich earn more money in the society hence creating a big gap between the poor and the rich. Some of the causes of income inequalities are unemployment, low payments, and illiteracy, which make individuals either earn less or no incomes. The government of the UK can reduce the rate of income inequalities by helping their citizens get better payments at their workplace, improving education systems, and encouraging people to use their talents and skills to start their own businesses. References Chen, Z., Zhou, Y. (2004). Income distribution during system reform and economic development in China. New York, Nova Science Publishers. Parker, S. C. (2004). The economics of self-employment and entrepreneurship. Cambridge, Cambridge University Press. Stiglitz, J. E. (2012). The price of inequality. London, Allen Lane. Welch, F. (2001). The causes and consequences of increasing inequality. Chicago, University of Chicago Press.