The increasingly widening income gap between the rich and the poor in America and the world yonder is due to the poor government policies that favor the affluent mostly. Such policies usually tile the balance of economic compensation since the last four decades have been marked by favor of the rich. Additionally, the wider gap is attributable to increased crime rates, stress, mental illnesses, and other related social evils ( Dabla-Norris, et al., 2015) . However, this paper analyses how education impacts income inequality with a special focus on the US and partly across the globe.
Lower educational attainment widens the income inequality gap due to limited opportunities for occupational choices. Again, citizens have limited access to jobs. In the US, those with a high school degree are paid meager salaries that are slightly above the poverty line. Conversely, individuals with a college degree have unbound opportunities for high-paying jobs that signify their ability and productivity in the competitive world market.
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The concept of human capital and income distribution explicitly relates the unambiguous negative association between the level of education and income inequality. For example, lower educational attainment further widens the income inequality gap while attaining degree qualifications result in skill premium that ultimately increases income (Castelló-Climent & Doménech, 2014). Therefore, some parts of the US and other developing nations experience a wide income inequality gap due to the lack of adequate educational attainment. It may be partly due to the unaffordability of education and this deprives a larger population of individuals of the passport to riches. Precisely, higher rates of illiteracy promote the inequality in income distribution and even a reduced human capital inequality cannot provide solutions to the challenge under discussion.
References
Castelló-Climent, A. & Doménech, R. (2014). Human capital and income inequality: Some facts and some puzzles. VOX. https://voxeu.org/article/human-capital-and-income-inequality
Dabla-Norris, E. et al. (2015). Causes and Consequences of Income Inequality: A Global Perspective. International Monetary Fund. https://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf
