Economic Inequality

Mind the gap: Addressing global income inequality

One of the most notable post-game analyses of the U.S. presidential election last November was penned by the French economist Thomas Piketty, who argued that Donald Trump’s upset victory was mainly a symptom of resentment over the widening gap between rich and poor. Piketty’s 2013 bestseller “Capital in the Twenty-First Century,” a sweeping account of

Iceland Plans To Become World’s First Country To Require Equal Pay For Women

"Gender equality benefits all of us," Iceland's Prime Minister Bjarni Benediktsson said on International Women's Day, as his government works on a law to require companies to show they pay men and women the same salary for the same work. Benediktsson discussed the plan in New York, where he attended an International Women's Day summit

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Science versus the ‘Horatio Alger myth’

LOS ALAMOS, N.M., Feb. 22, 2017—In a new study published today in the journal PLOS ONE, Los Alamos National Laboratory scientists have taken a condensed matter physics concept usually applied to the way substances such as ice freeze, called “frustration,” and applied it to a simple social network model of frustrated components. They show that

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How The Psychology Of Income Inequality Benefits Luxury Brands

The more extreme income inequality becomes, the more pressure people feel to create the impression that they’ve climbed up the social ladder. I like to think that despite being wealthier than most Americans, I remain immune to materialistic desires. I drive a 17-year-old Honda Accord and wouldn’t know designer clothes if you wrapped me in

New UTSA study delves into income inequality and inflation

A new study by Edgar Ghossoub, associate professor of economics at The University of Texas at San Antonio, posits that income inequality, in varying economies, can have substantial positive and negative effects for people in all walks of life depending on what kind of financial system they live under. Income inequality became a wide public

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Income inequality linked to export “complexity”

In a series of papers over the past 10 years, MIT Professor César Hidalgo and his collaborators have argued that the complexity of a country’s exports — not just their diversity but the expertise and technological infrastructure required to produce them — is a better predictor of future economic growth than factors economists have historically

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What income inequality is doing to Americans’ life spans

Two trends stand out in new projections of life expectancy in developed countries released  last week by the Lancet:  The United States, with large income inequalities and a host of other social issues that affect health, is falling farther behind most other wealthy nations. From 2010 to 2030 it will experience among the smallest increases

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Income inequality linked to export “complexity”

In a series of papers over the past 10 years, MIT Professor César Hidalgo and his collaborators have argued that the complexity of a country’s exports — not just their diversity but the expertise and technological infrastructure required to produce them — is a better predictor of future economic growth than factors economists have historically

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U.S. vs. China: Whose income inequality is worse?

Income inequality has become a hallmark of the modern economic era, and it’s not only U.S. citizens who are experiencing the trend. Widening inequality has been called “one of the key challenges of our time” by the World Economic Forum. It cites the negatives associated with a growing gap between rich and poor: weaker social

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There Are More Girls Living in Poverty Today Than in 2007

There are more girls in the U.S. living in poverty and low-income households now than were ten years ago, according to a new report released exclusively to Motto by the Girl Scout Research Institute. The report, titled the State of Girls, examines key changes in the economic, educational, physiological and psychological well-being of American girls

Facebook, Google, other ‘superstar’ firms blamed for increasing income inequality

Google and Facebook are among the “superstar” firms that some economists believe are driving a significant decline in U.S. workers’ income. Income for laborers in the U.S. has been on the decline over the past few decades. Historically, U.S. labor typically earned about 66 percent of the national income, with capital taking in about one-third,

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America’s Great Divergence

A growing earnings gap between those with a college education and those without is creating economic and cultural rifts throughout the country.  Half a century ago, economic opportunity and upward mobility were available to many white Americans, regardless of where they lived and what kind of education they had. They could graduate from high school

Fighting inequality and poverty requires a more humane view of economics

Oxfam is right to highlight disparities in wealth.  When influential charity Oxfam published its report, “An Economy for the 1%”, it was well timed to coincide with 2017’s January meeting of the world’s rich and powerful at the Swiss ski resort of Davos. Oxfam’s findings were widely discussed, including in a weekly news magazine aimed

Inequality in America: More than just a question of where to live and what to study

Economists like to distinguish between income inequality and wealth inequality. Income is fairly easy to define. Wealth is the sum of people's assets minus their liabilities. Measured either way, inequality in the U.S. is staggering. Take, for example, household income in 2014. The bottom 90 percent's average income was $33,068, whereas the top 0.1 of

Slow growth could mire world’s poorest people in poverty, warns UN

Over a third of people in the world’s poorest countries could remain in extreme poverty by 2030 if growth in those economies stays on its current trajectory, the United Nations has warned. A report published today by a collection of UN agencies predicted that growth in the world’s least-developed economies will pick up over the

Rising Income Inequality Is Throwing The Future Of Capitalism Into Question, Says World Economic Forum

The widening gap between the rich and poor has emerged as one of the biggest threats to the global economy, said the World Economic Forum in a report published on Wednesday, with its disruptive potential contributing to the Brexit vote and Donald Trump's victory in the U.S. presidential election. Worsening income inequality can't be remedied by

Has Income Inequality Finally Got To Top Of The IMF Agenda?

Outgoing US President Barack Obama has named the reduction of economic inequality as the “defining challenge of our time”. This is true not only for the United States – the richest country and, at the same time, the one with the highest wealth inequality – but also for a large number of countries around the