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Class : 11
Unit : Economics

What are the causes of inequality?

Ans : The causes of inequality are given below: i) Unequal distribution of property of assets:- Income is derived from properties like land, building, factories, etc. There are very few people who owns large amount of property which gives them high income. Maximum people have small property and their income is low which causes income gap between people. ii) Unemployment:- There is high rate of unemployment and under employment in Nepal. The unemployed people don’t have job. And underemployed people have low income job. Therefore, such people remain poor and gap between rich and poor increases. iii) Inflation:- The continuous rise in price level leads to decrease the real income of poor people. On the other hand, trader’s gets benefits from the increases in price level because during inflation their profit increases. Thus, inflation is the causes of inequality. iv) Difference in education, training and opportunities:- The people who are able to get better education and training are able to get better job with high salary. On the other hand, people who are born in poor families they do not get better education and training. Therefore, they have to do low income job. Thus, difference in education, training and opportunities causes inequality. v) Gender discrimination:- In many developing countries, there is gender income gap which favors males in the labor market. This is one of the main causes of inequality. vi) Difference in born capabilities:- Individuals are different from each other in their mental capabilities, intelligence and other abilities of mind and body. Some people are more intelligent and have inborn talents. Therefore, they earn more income than others who have less inborn talents. It creates income gap.
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