Comparative Analysis of Wage Inequality in UK and Uganda: 2011-2017

This paper provides a comparative analysis of wage inequality in the United Kingdom and Uganda, highlighting the disparities within their respective labor markets. It examines the differences in wage levels, focusing on both public and private sectors, and the impact of economic development on income distribution. The study utilizes the Gini coefficient and the equality-adjusted income index to quantify the extent of inequality in both countries. The paper emphasizes the contrasting economic landscapes, including government spending, industrialization levels, and per capita incomes, to explain the observed differences. Furthermore, it explores the distinct characteristics of the public and private sectors, including their objectives and salary structures, and their implications for wage inequality. The analysis draws on data from 2011-2017 and provides a comprehensive overview of wage disparities and their underlying causes in the UK and Uganda.

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
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UNU Wider, 2018, WIID – World Income Inequality Database, viewed on 26th
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inequality-database
Human Development Report, 2015, Inequality-adjusted income index, viewed on 26th
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