Poverty

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  • Created by: katie_lm
  • Created on: 29-04-17 14:39
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  • POVERTY
    • Causes of Poverty
      • UNEMPLOYMENT: acts as a limit to a decent income and cuts people off from society.
      • LACK OF SKILLS AND EDUCATION:Limits access to a decent income.
      • GENDER: Women are generally at higher risk of poverty than men.
      • LACK OF FINANCIAL CAPITAL: Particularly retired, poverty amongst old people is high due to lack of inadequate savings.
    • Causes of income inequality
      • EMPLOYMENT STATUS: unemployed or retired individuals will be on lower incomes than the employed.
      • WEALTH: individuals with higher levels of wealth can generate more income.
      • EDUCATIONAL OPORTUNITIES: individuals from poorer backgrounds are less likely to consume FE or HE and will therefore, have lower income earning abilities.
      • DICRIMINATION: condemns some groups to lower incomes as unable gain promotions.
    • Why is some inequality good for the economy?
      • More incentive to improve human capital
      • More incentive for risk taking and dynamic behaviour.

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