Capital flows and income inequality

Capital inflows and outflows play a major role in income inequality. When capital is flowing into a country, it tends to increase the skill wage premium, meaning those with higher skills and education earn more than those without. This leads to an overall increase in income inequality. On the other hand, when capital is flowing out of a country, it can decrease the skill wage

Image courtesy of interviewee. November 11, 2023

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © Faculti Media Limited 2013 - 2024. All rights reserved.
error: