Income Inequality and Its Affects on Healthcare and
INCOME INEQUALITY AND ITS AFFECTS ON HEALTHCARE AND MORTALITY
BASIC ECONOMICS
MISERICORDIA UNIVERSITY
TAMMY L. PARISE
FEBRUARY 17, 2013
Mastrianna (2010) speaks of income inequality as variations in earnings among individuals and households. He states that some income disparity is desirable for creating an incentive for individuals to invest in education and training and to take risks in employment and investment for greater rewards. Concerns are being voiced as to the income inequality in the United States due to the degree of inequality which is shown in the Lorenz Curve and Gini Index. (Pg. 189)
Some of the causes of income inequality that have the greatest impact Mastrianna says are first, education. Education or lack thereof has a great effect on income inequality. In 2007, the median incomes of a high school dropout were $22,256, compared to $31.408 for a high school graduate and $51,324 for an individual with a bachelor’s degree. Over a work life an individual with a bachelors degree can earn at least one million dollars more than a high school drop out (based on 2007 dollars). Employment opportunities have also shifted toward medical, business, and other services that disproportionately employ college graduates. Rapid employment in restaurants and retailing explain the low wages of high school graduates. (Pgs. 189, 190)
Second is technology, Mastrianna says that the use of computers in the workplace has increased and the estimate is that over 55 % of the labor force now uses computers on the job. These workers earn an average of 10-20 % more in wages than those who do not. Highly educated employees are also more likely to adjust to computers complexities than less educated employees. Consequently, income inequality is increased as the economy is becoming more technologically efficient. According to the AeA, the average technology worker earns $79,500 compared to $42,400 for all private sectors which will widen the income gap as more
BASIC ECONOMICS
MISERICORDIA UNIVERSITY
TAMMY L. PARISE
FEBRUARY 17, 2013
Mastrianna (2010) speaks of income inequality as variations in earnings among individuals and households. He states that some income disparity is desirable for creating an incentive for individuals to invest in education and training and to take risks in employment and investment for greater rewards. Concerns are being voiced as to the income inequality in the United States due to the degree of inequality which is shown in the Lorenz Curve and Gini Index. (Pg. 189)
Some of the causes of income inequality that have the greatest impact Mastrianna says are first, education. Education or lack thereof has a great effect on income inequality. In 2007, the median incomes of a high school dropout were $22,256, compared to $31.408 for a high school graduate and $51,324 for an individual with a bachelor’s degree. Over a work life an individual with a bachelors degree can earn at least one million dollars more than a high school drop out (based on 2007 dollars). Employment opportunities have also shifted toward medical, business, and other services that disproportionately employ college graduates. Rapid employment in restaurants and retailing explain the low wages of high school graduates. (Pgs. 189, 190)
Second is technology, Mastrianna says that the use of computers in the workplace has increased and the estimate is that over 55 % of the labor force now uses computers on the job. These workers earn an average of 10-20 % more in wages than those who do not. Highly educated employees are also more likely to adjust to computers complexities than less educated employees. Consequently, income inequality is increased as the economy is becoming more technologically efficient. According to the AeA, the average technology worker earns $79,500 compared to $42,400 for all private sectors which will widen the income gap as more
Bibliography: Qualifying Income-Related Inequality in Healthcare Delivery in the United States Wolters Kluwer Health/Lippincott Williams and Wilkins Retrieved on February 17, 2003 from http://www.jstor.org/discover/10.2307/4640689? Glynn, Sarah. (February 15, 2003) Income Inequality Linked to Hospital Readmission Medical News Today Retrieved on February 17, 2013 from http://www.medicalnewstoday.com/articles/256412.php Mastrianna, Frank V. (2010) Basic Economics. Mason. OH: South-Western, Cengage Learning. Pp. 189 – 200 McLaughlin, Diane K. PhD and Stokes, Shannon C. PhD (January 2002) Income Inequality and Mortality in US Counties: Does Minority Racial Concentration Matter? Retrieved on February 17, 2013 from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1447397/