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Before proceeding to the income inequality, we have to know that what inequality is?

Basically, inequality refers to the unfair situation in society when some people have more opportunities, money, etc than other people. It is an instance of disparity. There are various factors, which we consider when we talk about inequality such as:

➢ Social Status
➢ Wealth
➢ Opportunity for people or groups etc.

Based on the above definition, income inequality is an uneven distribution of income among the population. It is often presented as the percentage of income to a percentage of the population.


Causes of Income Inequality

There are various causes of income inequality like
➢ Unemployment
➢ Inflation
➢ Tax Evasion
➢ Regressive Tax
➢ Education and much more.

Development in innovation arguably leads joblessness at all skill levels. It reduces the involvement of human power in various sectors as computerization take holds over it. Jobs involving repetitive tasks have largely been eliminated due to the availability of machines as these machines are very effective and take less time as compared to the humans.

Unemployment is another reason of economic inequality. The unemployment rate is a vital monetary marker for any nation. A high rate of unemployment indicates that an economy isn't utilizing its accessible assets in an ideal way. The unskilled laborers are the worst affected in all these situations as economic reforms and deregulation of labor markets has contributed to a great extent to the problems of unemployment and inequality.

There is need to take major policy reforms at state and national level to increase the scope of productive employment.

Economic inequality has been increased drastically as there is a huge difference between the pay of individuals that leads the large disparity in savings and social status of the people.

How Economic Inequality and Health Relates to Each Other

According to the study, it has been proved that income and health are closely related to each other. As we can see that rich people are able to treat their diseases in a more efficient way as compared to the poor people. High-class people have more resources to treat their ailment with the latest treatments or medical facilities whereas low-class people don’t have that much resource to fight with their diseases.

Rich people are more conscious about their health so they can take various kind of nutritious food. On the opposite side, people having a low income are not capable of taking such kind of healthy eatable things because they hardly fulfill daily needs.

It’s true that health tended to be worse in more unequal societies and large income differences play a causal role leading to worse health. It is broadly acknowledged that at the individual level, higher salaries—and different markers of financial conditions—are related to better wellbeing.

It’s also true that economic inequality leads to changes in health. Both of them have common causes that can't all be measured; the cross-sectional relationship between inequality and health is very prone to give a one-sided gauge of how changes in pay imbalance influence wellbeing.


In recent research, Scottish Government data demonstrates that in 2013-14 the

➢ Middle 50% had just over half of all income
➢ Top 2% had nearly 10% of all household income
➢ Top 10% of families had around a quarter of all household income
➢ Bottom 40% of families had around a fifth of aggregate family income.

Weakness can make it more troublesome for imminent workers to search for jobs, less likely that employers will hire them, and more physically or mentally costly to work.

Sickness may likewise build truancy and harm job performance, which can influence income, increase the probability of dismissal, and reduce the chance of promotion. Employers may also discriminate against workers who have a physical or mental disability even when their performance is satisfactory.

Money buys better health. An unequal distribution of money directly leads to the economic inequality and also become the reason of unequal social status.

Measure to reduce in­equality in the distribution of income.

There are various measures that have been adopted by the Government to reduce in­equality in the distribution of income such as:

➢ Self-Employment Projects
➢ Ceiling on Land Holding
➢ Payment of Bonus
➢ Transfer Payments

According to the above measures, firstly annual payment has been made compulsory in every industry and each family is allowed to hold a certain amount of land, which is a good step. Additionally, different independent work ventures have been taken both in provincial and urban zones to tackle the developing joblessness issue. Various types of payments like concessions to senior citizens, unemploy­ment, compensation, pensions to free­dom fighters etc have been made for enhancing the welfare of cer­tain weaker segments of the general public.

Conclusion:

On the whole, it is widely acknowledged that income is a powerful determinant of health. There is a positive relationship between both of these factors as each additional dollar of income raises individual health and enables you to take advanced medical services.

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