Economic Inequality - Causes of Inequality

Causes of Inequality

There are many reasons for economic inequality within societies. "The single most important driver has been greater inequality in wages and salaries(OECD 2011-12-05)." These causes are often inter-related. Acknowledged factors that impact economic inequality include: greater inequality in wages and salaries (highly skilled workers earn more than others); wealth concentration; labor markets (globalization; technological changes; and policy reforms); more regressive taxation and tax loopholes and shelters such as tax havens; increasing education costs; computerization and increased technology; racial inequality; the gender pay gap; and nepotism.