Economic model to show wage inequality??

Answer 1

Here is the best economic model that demonstrates wage inequality.

Illegitimacy Rates:
Black ~ 68%
Hispanic ~ 45%
White ~ 24%
Asian ~ 15%

Median Household Income:
Asian ~ $61,000
White ~ $51,000
Hispanic ~ $36,000
Black ~ $31,000
.

Answer 2

Just look to the range in pay of the highest paid people in an organization to the lowest.

Historically (100 years ago) it might have been 40 to 1.

Lately there are numbers of 400 to 1 & more.

Just play with some numbers:

I get paid $1.00 you get paid $10.00
Lets say that is fair.

We both get a 10% raise, I get $0.10 you get $1.00.
If you carry this out for a number of times you can see how I will fall farther & farther behind.

Add to this today many firms are cutting the wages & benifits of
some employees while raising the wages & benifits of others.

Answer 3

The Gini coefficient is a "number" that tells you how much wealth is distributed between people. There is more on Wikipedia.