Wages Inequality in UK and Uganda: A Comparative Analysis

The assignment explores wage inequality in the UK and Uganda, highlighting differences between developed and developing countries. It examines the Gini coefficient, equality-adjusted income index, and other factors influencing wages in both nations.

Running Head: Wages Inequality in UK and Uganda
Wages Inequality in UK an Uganda

Wages Inequality in UK and Uganda 1
This paper talks about wage level differences in labour markets of UK, a developed
country and Uganda, a developing country. It also talks about disparities in their
public and private sectors.
The developed nations like UK, spend a lot in public sectors and provides its people
with free, safe and secured environment in terms of social, economic and political
sectors to live in whereas the developing countries like Uganda face an issue
regarding the same due to lack of financial stability and low levels of industrialisation.
Gini coefficient is an index which measures the level of income disparities among
various sections of the economy. The higher the number, the higher is the income
disparity which means there is higher inequality. The gini coefficient of UK and
Uganda in 2011-15 was 31.7 and 40.42 respectively (UNU Wider, 2018). This gives
us a view that the wages in Uganda are more unequal than those of UK. There are
lesser disparities among top and lowest wage earners in UK as compared to
Uganda. The equality adjusted income index by UNDP report for the year 2014
shows Uganda with 0.31and UK with 0.74 magnitudes (Human Development Report,
2015).
It is often the case that as the economy grows, the richer section tends to get richer
and the poorer gets poorer.
The public sectors are managed and operated by the government with the objective
of social development. The private sector on the other hand focuses on profit
maximisation and are operated and managed by the private ownership.
By 2016-17 the spending made by the UK government was close to 40% as a part of
GDP whereas Uganda spent 6-10% as a part of GDP. The salaries in private and
public sectors of Uganda are highly diverse whereas the bargaining in terms of
public and private sectors is quite rare in UK.
The countries that are developed have higher per capita incomes and are more
industrialised then the developing ones where primary sector is more prominent. The
healthcare facilities, job security and salaries are better in the case of developed
countries.

Wages Inequality in UK and Uganda 2
References:
UNU Wider, 2018, WIID – World Income Inequality Database, viewed on 26th
February, 2018. Available at: https://www.wider.unu.edu/project/wiid-world-income-
inequality-database
Human Development Report, 2015, Inequality-adjusted income index, viewed on 26th
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