income

• Income inequalities


  The basis of many social class inequalities. A person's income affects their access to a variety of things that might be regarded as desirable.
• Income


  Refers to the flow of money to person/household over time. Includes: Earning from employment, State benefits, Pensions
• Official statistics on income are derived from the following:

  The Family Resources Survey (FRS) - a government-sponsored survey that provides information about the living conditions & resources of households. The Annual Survey of Hours & Earnings (ASHE) - provides information about the levels, distribution & make-up of earnings & hours worked for employees in all industries & occupations
• Income surveys 


  Rely on their respondents giving accurate data & there may be reasons why people exaggerate or underestimate their income
• Trends in income distribution

  Britain is one of the most unequal countries in Europe in terms of incomes. During the 80's inequalities of income increased sharply during the period of Thatcher. The government cut rates of income tax for the very rich & cut the link between earnings & many state benefits, meaning that though benefits increased with inflation, they gradually lagged behind the rise in earnings.
• The effects of taxes & benefits on income distribution

  In 2013, the poorest 1/5 paid 37.4% of their incomes in tax compared to 35.1% of the incomes of the richest 1/5. One reason for this is because a poor person & a rich person pay the same duty on a litre of petrol for example, but it is a bigger proportion of the poorer person's income.
• Incomes of high earners

  Many high earners receive not only very large basic salaries but also annual bonuses that are often several times their annual salary. Critics point out that executives of companies that are performing poorly receive bonuses, which are supposedly a reward for high performance. In 2012, the High Pay Centre reported the total pay of chief executives of the 100 largest companies on the London Stock Exchange has risen by 48%, compared with average increases of less than 3% for their employees.
• Debates about income inequality

  The incomes of the poor have only risen very slowly since the 70s, while those on middle incomes have enjoyed much larger increases in real term. The richest members of society have seen the biggest increases of incomes.
• Functionalists & New Right

  Argued that unequal rewards are actually beneficial for society as they ensure that those with talent are encouraged to work hard & use their abilities. This is used as a justification for the high salaries & bonuses offered to top businesspeople.
• Marxist & Weberian perspectives


  Argue that senior managers & company directors are often in a position to determine their own salaries. It is the power that such individuals have within their organisations that allows them to create a culture where huge rewards have become the norm. Ordinary workers have to bargain for rewards & may have little option but to accept whatever wages & other rewards employers are willing to offer.