Income inequality. Literature review

Abstract

There is little consensus amongst economists when it comes to income inequality. This study consists of examining existent statistical data on inequality around the world and establish current trends. Furthermore, existing literature and empirical studies is analyzed in order to establish the inequality’s effects on society. High levels of income inequality are associated with higher unemployment, slow economic growth, social problems such as high unemployment and crime crime Moreover, there is even evidence about the correlation between inequality and health problems such as obesity, lower life expectancy and infant mortality.