Ryerson University student Teja Peltomaa is pursuing a bachelor of social work. Passionate about helping others, Teja Peltomaa volunteers with Kids Help Phone and maintains an interest in social concerns, like economic inequality.
The unequal distribution of opportunity and income among different societal groups is termed economic inequality. Such inequality is found in nearly every country around the world. It is tied to the income level a person is born into, education, disability status, ethnic background, and other related factors. There are two main types of economic inequality: income and wealth.
Income inequality relates to how people get paid, either through employment or other means, like investments, state benefits, or savings. Income is measured on both a household and individual basis. It is calculated before taxes and includes different federal payments and other benefits. This type of economic inequality has risen in many countries during the past 10 years.
However, income does not account for the entirety of a person’s economic situation. Wealth inequality comes into play, as well. Wealth encompasses a person’s total assets, such as private pension rights, bonds, or property. Assets enable people to become wealthier without increasing their income; when they are unequally distributed within a society, this results in wealth inequality.
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