Our recent staff research finds that new technology risks widening the gap between rich and poor countries by shifting more investment to advanced economies where automation is already established. This could in turn have negative consequences for jobs in developing countries by threatening to replace rather than complement their growing labor force, which has traditionally provided an advantage to less developed economies. To prevent this growing divergence, policymakers in developing economies will need to take actions to raise productivity and improve skills among workers.
This paper examines the trends in utilization of five indicators of reproductive and child health services, namely, childhood immunization, medical assistance at delivery, antenatal care, contraceptive use and unmet need for contraception, by wealth index of the household in India and two disparate states, Uttar Pradesh and Maharashtra. The data from three rounds of the National Family and Health Survey conducted during 1992-2005 are analysed. The wealth index is computed using principal component derived weights from a set of consumer durables, land size, housing quality and water and sanitation facilities of the household, and classified into quintiles for all three rounds. Bivariate analyses, rich-poor ratio and concentration index are used to understand the trends in utilization of, and inequality in, reproductive and child health services. The results indicate huge disparities in utilization of these services, largely to the disadvantage of the poor. Utilization of basic childhood immunization among the poorest and the poor stagnated in India, as well as in both states, during 1998-2005 compared with 1992-1998. The use of maternal care services such as medical assistance at delivery and antenatal care remained at a low level among the poor over this period. However, contraceptive use increased relatively faster among the poor, even with higher unmet need. Of all these services, the inequality in medical assistance at delivery is consistently large, while that of contraceptive use is small. The state-level differences in service coverage by wealth quintiles over time are large.
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More precisely, the study shows that in the U.S., the richest 1 percent of men lives 14.6 years longer on average than the poorest 1 percent of men, while among women in those wealth percentiles, the difference is 10.1 years on average.
Among the municipalities where low-income people have experienced the greatest increases in lifespan from 2001-2014, for example, are Toms River, New Jersey; Birmingham, Alabama; and Richmond, Virginia. Cities with the largest drops in lifespan among the poor are Tampa and Pensacola, Florida; and Knoxville, Tennessee.
Places with the overall longest lifespans for the poor include New York City, with a chart-topping 81.8 years on average, as well as a passel of cities in California. The bottom of that list includes Gary, Indiana (77.4 years on average); Las Vegas; and Oklahoma City.
Among the top income earners, people live longest in Salt Lake City (87.8 years on average); Portland, Maine; and Spokane, Washington. The rich have the shortest lives in Las Vegas (84.1 years on average); Gary, Indiana; and Honolulu.
They are getting richer at a much faster pace while the poor are still struggling to earn a minimum wage and access quality education and healthcare services, which continue to suffer from chronic under-investment.
The top 10% of the Indian population holds 77% of the total national wealth. 73% of the wealth generated in 2017 went to the richest 1%, while *670 million Indians who comprise the poorest half of the population saw only a 1% increase in their wealth.
As a result, decent healthcare is a luxury only available to those who have the money to pay for it. While the country is a top destination for medical tourism, the poorest Indian states have infant mortality rates higher than those in sub-Saharan Africa. India accounts for 17% of global maternal deaths, and 21% of deaths among children below five years.
So much for the growth in the gap; what about the size of the gap itself? Income inequality within California may not look like what you would expect. Regions such as Orange County and the Bay Area, despite their notable concentrations of wealth, are some of the more equal in the state. By far the most unequal California region is the Central Valley, where high-income households make 14 times as much as poor households.
There are other important lessons to draw from how income inequality varies throughout the state, and how the pattern has changed since the Great Recession. Part of the reason why regions such as the Bay Area and Orange County stack up favorably is because recent changes in income inequality have more to do with the deteriorating incomes of the poor than the growing fortunes of the rich.
Those California regions with the biggest chasm between rich and poor typically have some of the poorest populations in the state. In the Central Valley for example, households in the bottom 10 percent of the income distribution made less than $10,000 per year (adjusted for a family of four). Their equivalents in the Bay Area made more than double that.
Focusing on very rich households will yield different results than focusing on even slightly less rich households. Research from the Brookings Institute that compares higher-income households (those at the top 5 percent) to those at the bottom 20 percent makes the Bay Area appear much more unequal, with the greater San Francisco metro area the third most unequal region in the country.
Dr Martnez-Toledano continued: Differences in the composition of these assets across wealth groups is key. The richest people tend to own financial assets such as stocks and bonds, while the middle wealth groups tend to have a house as their major asset. But even with a big growth in house prices in both regions, stock market prices were the standout distinguishing factor, with a huge jump in value of US stocks during those decades.
Another important factor that can explain the wealth gap between rich and poor in the US is inequality of labour income, with the US economy showing a much bigger contrast in pay between the lowest and highest paid workers than the European economies over the same time period.
I could not believe my eyes when I walked through the narrow dirt pathways between the hundreds of rickety tin shacks in the township of Khayalitisha in South Africa. A beautiful African girl, not much younger than me, wearing a pale pink skirt that casually hung below her hips and a white, dirt-stained tank top, led me to Sekwamkele's hut.
Sekwamkele and I met the first day I began volunteering at his preschool. My eyes had been quickly drawn to his sparkling glare and sincere smile. The hut was no bigger than 144 square feet, which is roughly the size of an average public restroom. The family of four shared a queen-sized bed, and the only other pieces of furniture were a bookshelf and a table. It was hard for me to even imagine living like this, as I come from a seaside suburban town in Rhode Island, United States, and go to school at a college-prep boarding school in Massachusetts.
It is horrifying to imagine that almost half of the world (over three billion people) live on less than $2.50 a day, while the richest man in the world can spend a million dollars a day and still live well for the rest of his life. In a world where money translates into power, the majority of people are not fortunate enough to have sufficient funds to stay afloat. The middle class is quickly disappearing and falling through the cracks, leaving an even greater divide between the rich and the poor.
Unfortunately, the cycle of poverty is very hard to break. A major reason for the growing numbers of poor people is the bad quality of teaching that most children receive around the world. Almost a billion people who entered the twenty-first century lack the ability to read a book or write their name.1 This substandard quality of teaching does not provide students with the basic information needed for maintaining a job in the real world. Especially right now, with the economic and unemployment crisis, a lot of people are in need of financial aid due to the lack of job opportunities. Many are looking for work but, unfortunately, those who need money the most lack the tools and skills that make good employees. Thus, they tend to lose their jobs quickly and end up right back where they started. Many people in the townships want to work, but they just don't know how.
Unemployment is much higher for women than for men in South Africa. Philani, an organization that functions in six townships, devotes itself to helping women make a living, support their families, and escape the cycle of poverty in a way that also makes life in the townships better for everyone. These citizens are some of the most soulful and passionate people, and it is a shame that more people don't get to experience their amazing personalities because of the fear of entering the townships. In spending a lot of time at the Philani centre in Khayalitisha, I met Narsassana. She told me how hard it was to keep a job, take care of her five children, and make her way out of the township lifestyle. Narsassana was hired by Philani to work in their Educare preschool programme.
As if it were not hard enough for Narsassana to find employment, her house is constantly being broken into and the few items she owns are stolen because the burglars know she is away from the house all day. She explained the hardships of simply going to work each day: "I leave every day to try and make a living for myself, but every night I come home and my house has been broken into," Narsassana said. "I had to send my children to live further away with my mother because it was unsafe for them to live with me when I leave."
What Narsassana does every day is courageous and challenging: just to make a living for her family, she sends her children away to keep them safe and then leaves her house vulnerable to robbers. Philani encourages all of their outreach workers, like Narsassana, to inspire each and every woman living in the townships by going right up to their front door and telling them their personal stories about how they are changing their lives on their own, without help from a man.
As the gap between the rich and the poor continues to grow, it becomes increasingly evident that downsizing and maintaining a simpler lifestyle is becoming more common. While there are 2.2 billion children in the world, 1 billion of these live in poverty.2 Unfortunately, changing these statistics is going to take time, but we have to start by educating people and giving them opportunities to start new lives for themselves and their families. 17dc91bb1f