Economic inequality is the gap between how much a person has versus their peers. It’s a problem because unequal distribution of income and wealth can erode social cohesion, threaten democratic institutions, and hinder long-term growth. The global economy has become richer in recent decades, but many countries have experienced rising inequality.
The most unequal countries tend to be those where rapid technological change is leaving some workers behind in fast-growing industries, globalization has moved businesses to cheaper markets, and policies are deregulating industries, lowering taxes on corporations and the wealthy, stagnating wages for middle-income workers, and undermining labor laws and unions.
But inequality is also linked to factors that are specific to each country, such as social class and education. Studies have shown that one’s social class is correlated with their economic status, but the degree to which it is tied may fluctuate.
Across all countries, more than eight-in-ten adults say the gap between rich and poor is a very or moderately big problem in their country. Large shares of people in most countries say the cause is the political influence of the rich, while others cite problems with the education system, the fact that some are born with more opportunities than others, or robots and computers taking over jobs previously done by humans. A few smaller shares cite discrimination against racial or ethnic groups, or the lack of access to health care or healthy food. Some people also believe that if they worked harder or were smarter than their peers, they would be doing better in the economy.