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Information about Income Disparity

Income disparity or wage gap is a term used to describe inequities in average pay or salary between socio-economic groups within society, or the inequities in pay between individuals who produce the same work. Income disparity generally occurs when certain groups within society suffer from social inequality within a society.

Common examples include:
  • lower average income for females than males (see Gender gap below)
  • Income discrepancy between minority racial or ethnic groups and the majority.
  • The income gap between the wealthy and the poor.

Gender gap

In the context of economic inequality, gender gap generally refers to the systemic differences in the social and economic roles and wages of men and women, or boys and girls. There is a debate to what extent this is the result of gender differences, lifestyle choices, or because of discrimination.

The widespread mechanization of industry has been accompanied by a shift in gender differentials in highly industrialized countries. However, this closing of the gender gap has not necessarily been followed in less industrialized countries, where women may earn less than two thirds that of men.[1]

A United Nations report found that women working in manufacturing earned the following percentages in relation to men in 2003. The statistics are based on wages for all male and female workers, regardless of age, experience, or other factors.[2]

Country Wage %
Botswana53
Colombia65
Paraguay53
Japan60
Singapore61
Sri Lanka81
Denmark87
France78
Germany74
Hungary74
Ireland69
Latvia82
Lithuania77
Malta92
Sweden91
Ukraine69
United Kingdom79
New Zealand80


In 2004, women's wages in the USA were 76.5% of men's wages. This number compares the income off all men and women who work 35 hours or more each week. However, some studies, such as those done by the Independent Women's Forum, conclude that when taking into account variables when comparing male and female employment within the United States - type of job, hours worked in a week, tenure, benefits (for example maternity leave) - women make 98% of men's income. For further information, see Male-female income disparity in the USA.

According to the Centre for Economic Performance (CEP) at the London School of Economics, it would take 150 years for the income gap between the two genders to close up due to discrimination and ineffective government policies.[3]

Income disparity in Malaysia

Enlarge picture
Chart of Malaysia's Income disparity.
According to the UNDP 1997 Human Development Report,[4] and the 2004 United Nations Human Development (UNHDP) report,[5] Malaysia has the highest income disparity between the rich and poor in Southeast Asia, greater than that of Philippines, Thailand, Singapore, Vietnam and Indonesia. The UNHDP Report shows that the richest 10% in Malaysia control 38.4% of the economic income as compared to the poorest 10% who control only 1.7%. Kuala Lumpur as the capital of Malaysia has an increasing number of squatters, shanty towns and slums, and is also seeing an increase in criminal acts such as snatch theft, robberies, and rape.

See also

References

1. ^ Gender, Informality and Poverty: A Global Review S.V. Sethuraman, WIEGO, October 1998
2. ^ Statistics and indicators on women and men: Table 5g Women's wages relative to men's United Nations Statistics Division, 22 April 2005
3. ^ "Women have to wait 150 yrs for equal pay: Study". The Indian Express. Retrieved on 2006-07-29.
4. ^ Asian Analysis 1998 by Asean Focus Group, Professor Michael Leigh Director Institute of East Asian Studies University Malaysia, Sarawak.
5. ^ Speech at the Meeting between DAPSY National and Perak State Leaders In Teluk Intan by Lim Guan Eng, If the 2004 Petronas profits of RM 35.6 billion (US$9.89 billion) were distributed to the poor, Malaysia would not have wealth distribution problems.

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Socioeconomics or Socio-economics is the study of the relationship between economic activity and social life. The field is often considered multidisciplinary, using theories and methods from sociology, economics, history, psychology, and many others.
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Economic inequality refers to disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among nations.
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A woman is a female human. The term woman (irregular plural: women
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A girl is a female child, as opposed to a boy, a male child. The age at which a female person transitions from girl to woman varies in different societies; typically the transition from adolescence to maturity is taken to occur in the late teens.
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Gender difference is a distinction of biological and/or physiological characteristics typically associated with either males or females of a species in general. In the study of humans, socio-political issues arise in classifying whether a sex difference results from the biology of
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Male-female income disparity, also referred to as a "gender gap in earnings", in the United States, also known as the "gender wage gap," the "gender earnings gap" and the "gender pay gap", is used by government agencies and economists to refer to statistics gathered by the U.S.
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Squatting is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent or otherwise have permission to use. Squatting is significantly more common in urban areas than rural areas, especially when urban decay occurs.
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Shanty towns, "marginal" or informal settlements are units of irregular, low-cost dwellings, usually on lands belonging to third parties, and most often located on the periphery of cities.
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a heavily populated urban area characterised by substandard housing and squalor. The term traditionally referred to housing areas that were once respectable but which deteriorated as the original dwellers moved on to newer and better parts of the city, but has come to include the
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snatch theft is a criminal act of forcefully stealing from a pedestrian's person while employing rob-and-run tactics. It is typical for two thieves to work together and ride a motorcycle to make theft and escape easier.
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The Robbers by Friedrich Schiller, see The Robbers.


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Economic inequality refers to disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among nations.
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