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Income Inequality and Educational Inequality

Income inequality is the unequal distribution of household or individual income across the various participants in an economy. Income inequality exists in every country, although some countries are relatively more unequal than others. One way to measure income inequality in a country is to compare the average income of the top 10% of earners with that of the lowest 10% of earners. Using this metric, the top earners in the United States make almost 16 times as much as the lowest earners. By comparison, the lowest ratios of income between the highest and the lowest earners is found in other developed nations such as Japan, Finland, Sweden, and Norway with ratios from 4.5 to 6.2, while the highest ratio is found in Bolivia at 93.9.

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