In Depth Conclusions
The research has put forth the idea that when a countries educational system is in need of repair or reform it can lead to a population of low or non skilled workers filling up the economy. If there are no skilled workers to fill positions needed within the economy, then the economy itself suffers and begins to become dependent on single commodities to fuel the economy instead of relying on diversification. This proves to be very situational because commodities are not always easy to acquire and causes a shortage in income flux. With the economy in dire shape, that leaves much of the population of the country living below the poverty line. Also, the education system takes a hit again due to the government having to make cuts because of the budget shortage experienced. This creates a vicious loop. This situation also creates a rather large lower class of people in the population. With so many of the population under the poverty line, this creates the larger gap from the upper class population of the country, thus creating the larger income inequality gap. To summarize the theory, poor education and economic systems tend to lead to larger wage gaps and higher income inequality rates
When examining a country on the other end of the income inequality spectrum, one that has a well-developed economy and educational system, the same theory develops as before. If the students receive a good education, they are able to fill the need for skilled workers within the economy. This leads to a well-developed economy that allows its population to live above the poverty line. The cycle also applies to this situation as well. If the students have the jobs the economy does well and the school systems will have adequate money needed to continue fund the schools properly to provide good education opportunities. With all these skilled workers that are well educated, the lower class becomes smaller, while the middle and upper classes become larger. With the lower class smaller, that should lessen the gap of incomes between the populations of the country. To summarize this theory, better education and economic systems tend to lead to smaller wage gaps and lower income inequality rates.
The purpose of this research was to find a link between the economic and educational policies being put into use by a country and the income inequality rate. Another idea included the situation that all countries are really not sitting on the same plane income wise. There are various situations experienced by countries around the world that affect the gap in income of their populations. Many of these countries experience vicious cycles that do not allow them to change the situation at hand and create a further wage gap. With all the research and theories presented, there appears to be a correlation between the economic and educational policies of a country and the income inequality rate experienced by those countries.