10 Countries with the Worst Income Inequality in the World

Of all the effects of the economic crisis, perhaps one of the least visible, but most consequential has been the rising rate of income inequality around the world. And if you want to understand the whole concept, you should read the article in Insidermonkey on the countries with the worst income inequality.

The relationship between education and inequality is not always clear. While countries that have low income inequality have educated workforce, the opposite isn’t necessarily true. The U.S. and Israel, two of the most unequal countries, were among the largest spenders on education as a percent of GDP in 2011. “There’s something there that could happen over multi generations that can’t be seen in a single year snapshot,” Huang said.

What happens when a country has high income inequality? If the division of wealth sees a small group of people holding the majority of a nation’s capital, the balance of power is skewed; the lower and middle classes have access to less capital, fewer resources and – consequently – a low chance of breaking out of the cycle of poverty. While economists’ opinions vary on what constitutes optimal wealth distribution, many agree that the Gini index is one reliable indicator of the health and vitality of a county.

After all, why bother with a ranking if it is of no importance? Like we have already shown in a previous article about the top 15 most expensive countries in the world, some things are worth knowing for more than one reason.

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