The reasons for income inequality in United State are:
- Executive compensation going higher relative to the average worker.
- The act of Financialization.
- More concentration on industry.
- Reduced unionization rates.
- Reduced effective tax rates on higher incomes.
How does education influence income inequality in US.?
Education is known to be a key factor that leads to income inequality. Research has shown that the earnings gap that exist between workers that has a Bachelor's or more and workers that has only high school diploma is very wide and thus this lead to income inequality.
Income Inequality in the U.S. in regards to wealth is that as at 2020, research has shown that top 20% of the population gets 52.2% of income in all U.S. income and the richest of the wealthiest are top 5%, and they earned about 23% of all income.
Therefore, The reasons for income inequality in United State are:
- Executive compensation going higher relative to the average worker.
- The act of Financialization.
- More concentration on industry.
- Reduced unionization rates.
- Reduced effective tax rates on higher incomes.
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