Income Inequality in Singapore: Causes, Effects and Solutions

Running head: INCOME INEQUALITY IN SINGAPORE
INCOME INEQUALITY IN SINGAPORE
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2INCOME INEQUALITY IN SINGAPORE
Abstract
Singapore is a city as well as country that have been one of the countries that have given top
priority to social issues. Like any other developed countries, it is faced with the issue of social
and economic inequality. The unequal distribution of income among the citizen has lead to class
based social stratification. The main focus of this research will be the concept of income
inequality and problem derived from uneven income distribution. Singapore possesses
multiculturalism and therefore the problem of class division is a concerned issue that Singapore
wishes to pay more attention. Therefore the research will be carried out to investigate on income
inequality that is leading to social inequality.

3INCOME INEQUALITY IN SINGAPORE
INCOME INEQUALITY IN SINGAPORE
Introduction
Background of the study:
Singapore’s idea of income equality is connected to the concept of fair and equal division
of income. In Singapore, income inequality is considered a significant problem. Due to certain
economic pattern there is an misbalance between the wealthy and poor people where only the
wealthy people are found with advantages of society. There have been numerous studies
conducted on Singapore present situation of income equality such as ‘Inequality and the need for
a new social compact’ by Kim Song TAN (2013) that discusses the impact of income inequality
such as wage stagnation and decline in real wage. This paper is aimed at the inequality of income
in Singapore. The paper also examines how the characteristic of unequal income leads to social
inequality.
Statement of the problem:
In recent times, Singapore has been faced with a socio-economic problem of income
inequality (Solt, 2016). The country is majorly concerned with social harmony and has
constantly made it the priority of government. The problem of inequality of income distribution,
has affected other aspects such as social inequality, social mobility and social integration has
lead to many other associated issues in the state. Therefore, the study has been developed to
explore and investigate three aspects in Singapore that include income inequality, social mobility
and social integration.