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Buildings in Rio de Janeiro, demonstrating economic inequality. Effects of income inequality, researchers have found, include higher rates of health and social problems, and lower rates of social goods, [1] a lower population-wide satisfaction and happiness [2] [3] and even a lower level of economic growth when human capital is neglected for high-end consumption. [4]
Inequality in land and income ownership is negatively correlated with subsequent economic growth. [100] Increasing inequality harms growth in countries with high levels of urbanization. [101] High unemployment rates have a significant negative effect [clarification needed] when interacting with increases in inequality. High unemployment also ...
Economic inequality is an umbrella term for a) income inequality or distribution of income (how the total sum of money paid to people is distributed among them), b) wealth inequality or distribution of wealth (how the total sum of wealth owned by people is distributed among the owners), and c) consumption inequality (how the total sum of money spent by people is distributed among the spenders).
The relationship between poverty reduction and differing levels of welfare expense as a percentage of GDP [1] The effects of social welfare on poverty have been the subject of various studies. [1] Studies have shown that in welfare states, poverty decreases after countries adopt welfare programs. [2]
The social determinants of health in poverty describe the factors that affect impoverished populations' health and health inequality. Inequalities in health stem from the conditions of people's lives, including living conditions , work environment, age , and other social factors, and how these affect people's ability to respond to illness . [ 1 ]
For example, a low-income state like Mississippi — where the median income for an individual is the lowest in the country at $47,446 — also has the highest rate of persistent poverty at 24.4% ...
Poverty and lack of access to birth control can lead to population increases that put pressure on local economies and access to resources, amplifying other economic inequality and creating increase poverty. [253] [90] [254] Better education for both men and women, and more control of their lives, reduces population growth due to family planning.
In the age of inequality, such anti-poverty policies are more important than ever, as higher inequality creates both more poverty along with steeper barriers to getting ahead, whether through the lack of early education, nutrition, adequate housing, and a host of other poverty-related conditions that dampen one's chances in life.