Causes of income inequalities
Difference in family background and the inheritances of resource. Individuals who come from rich families tend to be well off as they inherit a lot of wealth while those who come from poor families inherit poverty.
Differences in talents and natural gifts individuals with rare talents that are highly demanded tend to be rich compared to those no talents e.g musicians and footballers etc
Luck is another important factor. This is because some people are naturally lucky therefore, they can easily have access to employment opportunities and other sources of income while those who are poor assume they are unlucky.
Social evils some individuals in society are social evils like gambling competition, smuggling pouching embezzlement etc.
Regional distribution of natural resources. People who come from regions or areas endowed with a lot of a natural resources are rich compared to those with fewer natural resources .This is because of the limited economic activities.
The level of education differences in the level of education may determine income earned by different people. Those who highly educated tend to get high incomes compared to those with low level of education.
Differences in the nature of jobs certain jobs are risky and hence people employed such jobs are given higher wages compared to those in less risky jobs. There are some jobs which are not paying at all. The profit from such jobs is so low. Just look at the table below which we found on facebook, of course it is a joke –just funny.
Uneven distribution: This include economics infrastructure like schools, hospitals, banks, road etc people living in such area with more social and economic infrastructure This is because these infrastructure stimulate the economic activities in the area
Access to financial or income: Those people who have access to financial and business can easily borrow and hence earn high income and vice versa.
Government policy In regard to taxation where government imposes higher taxes on people, their disposable income tend to reduce compare to those who are subsidized.
Discrimination in the labour market This may be based on political ideology , tribe neutrality etc in a country where goods jobs are given to certain groups of people They will get higher incomes, and up of with incomes.
Attitude towards work: Those people who have positive attitude towards work tend to be hard working hence they get higher incomes compared to those with negative attitude towards work.
Experience those people who have worked foi along period earn more compared to those who are fresher in employment
Colonial era: The colonialist divided the society into different groups and these were paid differently i.e the clerical worker and those in administration were paid differently and the status has been followed
Historical factors central region is richer than other areas in Uganda this is because it was the administration centre for the colonial master.
Differences in physical strength and mental abilities The physical strong and mentally sound normally have more wealth.
Differences in talents and natural gifts individuals with rare talents that are highly demanded tend to be rich compared to those no talents e.g musicians and footballers etc
Luck is another important factor. This is because some people are naturally lucky therefore, they can easily have access to employment opportunities and other sources of income while those who are poor assume they are unlucky.
Social evils some individuals in society are social evils like gambling competition, smuggling pouching embezzlement etc.
Regional distribution of natural resources. People who come from regions or areas endowed with a lot of a natural resources are rich compared to those with fewer natural resources .This is because of the limited economic activities.
The level of education differences in the level of education may determine income earned by different people. Those who highly educated tend to get high incomes compared to those with low level of education.
Differences in the nature of jobs certain jobs are risky and hence people employed such jobs are given higher wages compared to those in less risky jobs. There are some jobs which are not paying at all. The profit from such jobs is so low. Just look at the table below which we found on facebook, of course it is a joke –just funny.
Uneven distribution: This include economics infrastructure like schools, hospitals, banks, road etc people living in such area with more social and economic infrastructure This is because these infrastructure stimulate the economic activities in the area
Access to financial or income: Those people who have access to financial and business can easily borrow and hence earn high income and vice versa.
Government policy In regard to taxation where government imposes higher taxes on people, their disposable income tend to reduce compare to those who are subsidized.
Discrimination in the labour market This may be based on political ideology , tribe neutrality etc in a country where goods jobs are given to certain groups of people They will get higher incomes, and up of with incomes.
Attitude towards work: Those people who have positive attitude towards work tend to be hard working hence they get higher incomes compared to those with negative attitude towards work.
Experience those people who have worked foi along period earn more compared to those who are fresher in employment
Colonial era: The colonialist divided the society into different groups and these were paid differently i.e the clerical worker and those in administration were paid differently and the status has been followed
Historical factors central region is richer than other areas in Uganda this is because it was the administration centre for the colonial master.
Differences in physical strength and mental abilities The physical strong and mentally sound normally have more wealth.