My KIPP Blog – Week 3
For the topic of my final assessment essay, I have an initial idea about income inequality.
Since the 1980s, the Gini coefficient has climbed rapidly and income inequality has worsened in many countries. So what are the causes of income inequality? What is the relationship between income inequality and economic growth? How to adjust the existing pattern of income distribution to promote economic growth?
- The causes of income inequality
(social reasons) the gap between regions, educational inequality, gender inequality, and related systems (such as fiscal system, minimum income system, etc.).
(individual reasons) individual ability, opportunity, and effort…
- The impact of income inequality on economic growth is divided into two main views.
(1) Income inequality inhibits economic growth. Income inequality harms economic growth by lowering total social demand, distorting redistribution policies, increasing political rent-seeking costs, causing waste of potential talent resources, and weakening social cohesion…
(2) Income inequality drives economic growth (e.g., the coexistence of high economic growth and high income inequality in China).
Income inequality increases government spending on public education → promotes social human capital accumulation;
Income inequality increases the mobility of labor force → concentration of highly skilled labor force → increase of labor productivity.
- Solutions
Improve redistribution system, taxation and transfer payment system…
Chen,
What a wonderful topic idea! Income inequality is also something that I am passionate about. I have a few questions pertaining exactly what you would study within income inequality. Are you going to base it on a certain place (Your home country, Scotland, or somewhere else)? Are you going to explore how the inequality happened? Are you going to explore how to fix it? I am very excited for you to look into this topic and can’t wait to hear all about it.
-Kate 🙂
Hi Kate! Thank you for your comment! Yes, I am going to explore the causes, impacts, and regulation measures of income inequality based on China. These three aspects of income inequality may vary from place to place. So compared to other places, I am more familiar with the situation of my home country, and it may be easier for me to find the entry point and direction. Looking forward to discussing more details with you! (Although I haven’t figured out how to write the specifics yet..)
I think your plan is very logical. The causes and effects of inequality are discussed in depth. I think you should read some articles about tax system, macro economy and micro economy in your articles. I think they will help you. Better refine your project.
Yes! Articles in these areas are essential for me when writing my essay. Thank you for your suggestion!