Income inequality happens when there are big differences in how people can get jobs and money. Let's break it down really simply:
Education and Skills: People who have a good education usually get better-paying jobs.
Capital Access: If someone has money or resources, they can invest, which means they can make even more money.
Network Effects: Knowing the right people can lead to better job opportunities.
Because of these things, we see a gap between how much money people make, especially between those who have connections and those who don't.
Income inequality happens when there are big differences in how people can get jobs and money. Let's break it down really simply:
Education and Skills: People who have a good education usually get better-paying jobs.
Capital Access: If someone has money or resources, they can invest, which means they can make even more money.
Network Effects: Knowing the right people can lead to better job opportunities.
Because of these things, we see a gap between how much money people make, especially between those who have connections and those who don't.