Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality include: Differences in abilities and talents. Differences in education and training. Different preferences for work versus leisure. Different preferences for low-paying but safe jobs relative to high-paying but dangerous jobs.

Question

Emeline

Business

23 March, 10:21

Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality include: Differences in abilities and talents. Differences in education and training. Different preferences for work versus leisure. Different preferences for low-paying but safe jobs relative to high-paying but dangerous jobs.

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Paola · Answer 1

Differences in abilities and talents

Explanation:

Income inequality refers to variation or discrepancy between income levels of individuals. Income inequality arises on various accounts one of which being, difference in abilities and talents.

All individuals possess different skill sets and their efficiencies vary too. Some individuals are more creative and talented than others while some are more laborious and hardworking.

Each skill set has it's own demand and thus, income is fixed as per the demand of a particular skill set for a given sector.

This leads to some earning lot more than others and differences in pay scales as per the abilities individuals possess.