The effects of income inequality

Introduction.Over time have been addressed many possible effects arising from inequalities of income. Criticism for each of these effects were immediate, most of them claiming that the selection of samples used to demonstrate the assumptions made were „carefully” selected in order to achieve the target and that there is not a direct relationship between income inequality (their increment) and these effects.

Aim of the study. Of the many effects that income inequalities have, identified in the literature, this paper will analyze three of them, namely: economic growth, human capital and social cohesion.

Keywords: income inequality, social cohesion, economic growth, human capital