The Detailed Research - Part 2

As we move on from Section 1, let's delve deeper into the research! This is Section 2.

2. Income Inequality, Capability Inequality, and Well-being

Income inequality, capability inequality, and well-being are interlinked concepts, each offering unique perspectives on societal disparities.

Income inequality, the most common form, refers to the uneven distribution of income within a society, hindering social mobility and impacting political stability. This disparity can act as a barrier to achieving SDG 10, aimed at reducing inequality within and among countries.

Capability inequality, as per Amartya Sen's capabilities approach, extends beyond income, focusing on diverse abilities and opportunities. It encompasses factors like education, healthcare, political freedoms, and social opportunities. For instance, individuals with disabilities may face capability inequalities despite having comparable income levels.

Well-being, representing overall quality of life, is influenced by both income and capabilities. It includes dimensions such as physical and mental health, education, social inclusion, and personal satisfaction. Holistic assessments like the Multidimensional Well-being Index consider multiple indicators.

→ Policymakers must consider all three dimensions—income, capabilities, and well-being—when addressing inequality. Focusing solely on income might overlook disparities in healthcare, education, and social opportunities.

Although income inequality and well-being inequality are two independent yet related ideas, they represent various aspects of societal disparities. Income inequality pertains to differences in financial resource allocation, measured by ratios like Palma, income quin tiles, or the Gini coefficient. It highlights discrepancies in income and wages, shedding light on financial well-being.

Inequalities in well-being or capabilities encompass more than just income, considering access to social opportunities, healthcare, education, and nutrition. The Human Development Index (HDI), including income, education, and health indices, is a common tool for assessing well-being. Wealth inequality affects people's capacities and well-being, showing the interconnectedness of these ideas.

The balance policymakers strike depends on context. Economic justice and societal stability require reducing income disparity, but addressing disparities in well-being and capabilities is equally crucial for a just and equitable society. Striking the correct balance necessitates policies that consider both income and non-income aspects of inequality.

In conclusion, decisions should align with the goals and difficulties of a community. Advancing social and economic growth often requires a comprehensive strategy addressing both income and well-being inequality.

Uncensored headcount ratios by indicator for the entire sample. Source: Authors’ calculations based on 2018 IOP and IDHAL’s survey

Both of these photos, are the basic explanations of Amartya Sen’s Capability Approach

Share of vulnerable employment in Asia and the Pacific, 2016 This is from "A guide to Inequality and the SDGs"

Distribution of national MPWB means and confidence intervals across Europe. From "Well-being is more than happiness and life satisfaction: a multidimensional analysis of 21 countries"

The Fundamentals of how Equality Investing Impact (EII), will try to tackle Inequality - Source

Relationship between national wealth and CWI14. Source: Authors’ elaboration from UNPD

Before ending this section off, we hope that you've learnt something from this, and these graphs showcase the image well. We hope it answered the main question well, and don't forget to like and share this blogpost. See you in Section 3!

— RL