THE DISTRIBUTION OF INCOME(S 19-83 O\'lmasov Javlonbek)
Limitations[edit]
There exist some problems and limitations in the measurement of inequality as there is a large gap between the national accounts (which focus on macroeconomic totals) and inequality studies (which focus on distribution).
The lack of a comprehensive measure about how the pretax income differs from the post-tax income makes hard to assess how government redistribution effects inequality.
There is not a clear view on how long-run trends in income concentration are shaped by the major changes in woman's labour force participation.
Causes of income inequality[edit]
Main article: Economic inequality Causes of income inequality and of levels of equality/inequality include: labor economics, tax policies, other economic policies, labor union policies, Federal Reserve monetary policies & fiscal policies, the market for labor, abilities of individual workers, technology and automation, education, globalization, gender bias, racism, and culture.
How to improve income inequality[5][edit]
Taxes[edit]
The progressive income tax takes a larger percentage of high incomes and a smaller percentage of low incomes. Effectively, the poorest pay the least of their earned incomes on taxes which allows them to keep a larger percentage of wealth. Justification can be illustrated by a simple heuristic: The same dollar amount of money (e.g. $100) has a greater economic impact on only one party—the poor. That same amount has little economic impact on a wealth individual, so the disparity is addressed by ensuring the richest individuals are taxed a greater share of their wealth. The state then uses the tax revenue to find necessary and beneficial activities for the society at large. Every person in this system would have access to the same social benefits, but the rich pay more for it, so progressive tax significantly reduces the inequality.