Gladys Maguad

Gracel Joanne Docdocil

Marion Louis Denila
BSAct 2-1

INCOME INEQUALITY

 The unequal distribution of household or

individual income across the various
participants in an economy.
Income inequality in the Philippines is
the extent to which income, most
commonly measured by household or
individual, is distributed in the
Philipipines in an uneven manner.

MULTIPLE ROOTS OF
INCOME INEQUALITY

 HEALTH If people are not healthy they will

not work to their full productive capacity.
Ascertaining whether inequality is a direct
cause of ill health (as opposed to merely being
correlated with it) is difficult.
EDUCATION if children are less successful at
school, they are less likely to become highly
skilled workers. Their productive capacity of the
economy is diminished.

 POLITICAL Philippines political culture is

dynastic in nature, meaning local officials are
often related to each other by blood. Rampant
graft and corruption maintains a society that
discriminates against the poor in favor
connected individuals and businesses.

WHY IS IT A PROBLEM?

 The rise of income inequality and wealth

inequality are intimately connected. And causes
all sorts of problem over the long term.
Income inequality has a snowballing effect on the
wealth distribution: top incomes are being saved
at high rates, pushing wealth concentration up; in
turn, rising wealth inequality leads to rising
capital concentration, which contributes to further
increasing top income and wealth shares.

THE CAUSES OF INCOME INEQUALITY VARYS

SIGNIFICANTLY TO THESE FACTRORS

Region
Gender
Education
Social status
Economic growth

The positive effect of income inequality in our society

Their will be also rich people.

By them they can give jobs opportunities from
their business.

The negative effect of income inequality in

our society
Reduction of economic growth
The gap between the richest and poorest
Correlation between income inequality and
economic growth

SOLUTIONS FOR INCOME INEQUALITY

 Make high-quality childcare available to

all
Tackle polarized pay
Create good jobs around the country
Transform jobs into careers with better
training
Fairer taxes

STATISTICAL UPDATES

Update:
The National Statistics Office (NSO) is conducting the2012
Family Income and Expenditure Survey (FIES), which
aims to gather data on family income and family living
expenditure and related information affecting income and
expenditure levels and patterns in the Philippines.
The Gini coefficient of the income of families in the country in
2009 was estimated at 0.448. Among the regions, income
inequality is highest in Region VIII (Eastern Visayas) with a
Gini coefficient of 0.484. On the other hand, excluding the
ARMM, income inequality is lowest in Region III (Central
Luzon) with a Gini coefficient of 0.373.