Social inequality usually refers to a situation where do not have equal social status such as voting rights, freedom of speech, property right and right to have education ,health care, good housing and other social necessities.
Social inequality and economical equality are not same but they are linked with each other. Economical inequality can be explained as inequality in distribution of wealth and economic assets. Whereas social inequality is referred as not having enough money for higher education, health care and housing. As for maintaining better living standard one needs wealth.
Social inequality is linked with racial and wealth inequality. In a society, people’s behavior like racism and discrimination affects not only personal but professional life which as a result affects their income.
In labor market, economic inequality is caused by determination of wages. Different types of work have different demand and supply which results in equality. Employers who give wages below market value there business suffers under staff situation. There competitors can advantage by offering higher wages to get best labors. A businessman who offers the wages below or higher the market value certainly cannot maximize his profit. If professional and labor organization limit their supply of workers which will have higher demand and increased income for the members but by limiting workers unemployment will increase in the society.
A job which has low demand and many workers willing for the job (high supply) will result in low wages. It is because of the fact that competition between the workers makes the wages down. It is usually assumed as population and change in technology are to be blamed for economic inequality. Many critics say that population growth increases the supply of workers which results in low income, however it is assumed as the world is fixed economic pie and population growth gives few resources , if this was the reality then we would find that people as a whole becoming poorer and poorer over time as population is increasing consistently. In fact humans have become rich over the past centuries, even the poorest part of the world is better today what it was a century ago
