Equitable Distribution of Income from Work

• Economic Benefits of Inequality

  • Increased education and skill levels in the workforce
  • Encourages the workforce to work longer and harder
  • More mobile labour force
  • Potential for higher savings and capital formation
• Economic Costs of Inequality

  • Reduction of: overall utility, economic growth, consumption and investment
  • Creation of: conspicuous consumption, poverty and social problems
  • Increased costs of social welfare
• Social Costs on Inequality

  • Well-being
  • Social class division
  • Poverty