Scarce professional skills and positions in society attract higher rewards because they are functionally important hence accompanied by high prestige, good salary, and resources to have enough leisure. Ownership of capital goods has also contributed to the unequal distribution of money. However, such ownership does not come easily since individuals need to have proper management of their financial resources to make them engage in investments that keep them above others in the society. However, the fact that the high rewards associated with technical knowledge create an excess supply of expertise means that rewards to be paid to those qualified are devalued to accommodate the high number of individuals. Excess supply also means that incidences of unemployment are likely to come about thereby creating situations where many lack a source of income . Employers have the right to labor over others hence decide wages to pay their labor force. Unequal distribution of income is, therefore, largely contributed by the high cost of filling the gaps that exist in the fields that are accompanied by high rewards, devalued rewards and limited savings among those employed.
Solutions to unequal distribution of income
The government can play a key role in reducing the gap in income distribution by providing public services such as schools and hospitals that reduce the cost of access by those with limited finances. By doing so, the government will have reduced the burden borne by the disadvantaged in trying to afford effective health care and education and hence can opt to save a portion of their income to help them acquire capital goods. Governments have to restrict employers’ rights over labor by putting in place minimum wage policies that help prevent any forms of labor exploitation. A progressive tax system is also important since it lowers the gap between those with high rewards and those whose reward is devalued due to the excess supply of technical knowledge.
References
Davis, K., & Moore, W. (1944). Some Principles of Stratification. American Sociological Review, 242-249. Retrieved from http://www.jstor.org/stable/2085643
Ranis, G. (2004). Human Development and Economic Growth. New York: Human Development Center. Retrieved from http://ssrn.com/abstract=551662
