Report on UK Wealth Gap: Trends, Inequality, Opportunities, Impacts

This report analyzes the wealth gap in the UK, focusing on trends in real income levels since 1961, the inequality of opportunity, and the overall impact of inequality. It highlights that the UK ranks 5th in wealth inequality, with 10% of the population holding 44% of the nation's wealth. The report also discusses how inequality of opportunity negatively correlates with economic growth and how investments in education can improve opportunity. Furthermore, it addresses the challenges inequality poses to economic growth, social mobility, and the potential for poverty traps and discrimination. The analysis references multiple studies to support its findings, providing a comprehensive overview of wealth distribution and its effects on UK society and economy. Desklib offers similar solved assignments and past papers for students.

UK Wealth Gap
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Gap between Rich and Poor
• Unequal distribution of asset is called
wealth inequality.
• Rank of UK is 5 in inequality.
• The trend in real income is increasing
from 1961 to 2011.
• 10% population has 44% of the UK’s
wealth.
• In 1970s, lower inequality was observed
compared to recent recession.
• Income of rich has fallen more than the
poor's income in the recent recession.
• Inequality was fallen but not as much as
in1970s.
Trend in Real Income Levels Since 1961
(The Income Distribution in the UK: A Picture of Advantage and Disadvantage 2019)

Inequality of Opportunities
• Inequality due to non-controllable state or luck is called inequality of opportunity.
• Unequal opportunity has an impact on overall inequality.
• It is correlated with growth.
• Negative correlation between unequal opportunity and growth.
• Reduction in inequality of opportunity can improve economic growth.
• Example, spending on education is effective to increase the opportunity.

Impact of Inequality
• Inequality is a challenge to economic growth.
• Political power can both be the reason and result of the inequality.
• It damages the social mobility.
• This effect all the groups of people across age, sex and education.
• Inequality of power can perpetuate inequalities.
• Poverty traps, waste of human potential and making the society less creative is the result
of inequality.
• Discrimination is another result which can be seen in both rich and poor.

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Reference
• Hurst, C.E., Gibbon, H.M.F. and Nurse, A.M., 2016. Social inequality: Forms,
causes, and consequences. Routledge.
• Katharine Bradbury, & Robert K. Triest, 2016. Inequality of Opportunity and
Aggregate Economic Performance. RSF: The Russell Sage Foundation Journal Of
The Social Sciences, 2(2), 178.
• Marrero, G., & Rodríguez, J., 2012. Inequality of Opportunity in Europe. Review
Of Income And Wealth, 58(4), 597-621.
• The Income Distribution in the UK: A Picture of Advantage and Disadvantage,
2019. The Income Distribution in the UK: A Picture of Advantage and
Disadvantage [Ebook]. Forschungsinstitut zur Zukunft der Arbeit Institute for the
Study of Labor. Retrieved from http://ftp.iza.org/dp8835.pdf