In the United States, […] This It is not only worse than at any time since the 19th century, it’s getting worse within countries, with income inequality at an all-time high. Data from household income tax returns in 2009 shows that the top 1% of households had an average income of $1,219,700 per year in pre-tax income and paid an average federal tax rate of 28.9%. On a global scale, the bottom earners’ income increases by only 1.4 percent, while the top earners’ grows by 2 percent yearly. This article is based on Philip Gerson, 1998, "Poverty, Income Distribution, and Economic Policy in the Philippines," IMF Working Paper 98/20 (Washington: International Monetary Fund). 565–91. Note: See more recent data on the Philippines on the dashboard Philippines: By … Poverty reduction, economic growth, and income inequality CROSSROADS TOWARD PHILIPPINE ECONOMIC AND SOCIAL PROGRESS - Gerardo P. Sicat (The Philippine Star) - … From this extreme point onwards, income inequality would steadily lessen throughout the subsequent decade— 0.4822 (2000), 0.4605 (2003), 0.4580 (2006), and 0.4484 (2009). Urban squatting in the Philippines has deep historical roots, but the problem is essentially entangled with the lack of job opportunities in the urban areas and of affordable social housing for the poor working people. But income inequality is another story. The Philippines is one of the countries in Asia-Pacific where income inequality is increasing, along with China, India, Indonesia and the Russian Federation, despite economic gains in the region, the Asian Development Bank (ADB) said. The disparity between the richest and poorest households, however, remains vast. If the government is able to execute its plans successfully, it is capable of reducing poverty in the Philippines by 13 to 15 percent by 2022. References: Klaus Deininger and Lyn Squire, 1996, "A New Data Set Measuring Income Inequality," World Bank Economic Review, Vol. The goal for the Philippine government is to create more jobs, improve productivity, invest in health and nutrition while focusing on reducing poverty. The Manila-based bank acknowledged that the Philippines has been taking measures to address the problem. Global inequality is rising. In a report called “Eradicating […] This inequality rating was achieved after a critical period of economic restructuring throughout the Ramos and Aquino administrations. The Philippines has a record high of urban squatting, where 20-25 million Filipinos do not have decent housing. Income distribution in the Philippines is highly uneven, and poverty rates are higher than in other ASEAN countries. 10, pp. In addition, although the poverty rate has declined over time, the rate of decline has been lower than in other countries, and income inequality has been persistent. Income inequality, or the wide gap in wage growth and value between the highest-earning citizenry and the lowest-earning workers in a given nation, is increasing at an alarming rate. And since 1965, income inequality has worsened: The ratio of CEO pay to worker wages skyrocketed from 20-to-1 to 303-to-1 in 2014. Compared to the situation in the mid-1980s, there has been some progress in redistributing household income from the highest two income deciles to the lower deciles. Inequality is severe and undermines development Inequality still remains severe. The need for a solution, it’s pressing. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts. ... Other partial solutions. We should be challenged by that,” according to Ms. Navarro. To worker wages skyrocketed from 20-to-1 to 303-to-1 in 2014 … ] Global inequality is severe and undermines inequality! 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