Gender income disparities persist, with more women in lower and medium-income brackets, while men dominate higher incomes. Historical gender norms limit women's opportunities, concentrating them in undervalued professions (Richards-Melamdir 2021). A persistent gender pay gap further exacerbates income imbalances, fueled by workplace discrimination, biases, and stereotypes hindering women's career progression and negotiation of salaries (Speer et al. 2013). These dynamics perpetuate ongoing income disparities between man and women. Several researchers have been reflecting on the phenomenon of the feminization of poverty for several decades (Chant 2008; McLanahan and Kelly 2006; Pearce 1978; Zulfiqar and Malik 2023), highlighting the precariousness of women, occupying jobs with lower salaries compared to men, exemplifying that single-parent families are an increasingly visible reality. Labor instability, combined with the sphere of private life, can lead to situations of enormous fragility and poverty. The precariousness of employment affects all age groups, albeit in different proportions. Women are at greater risk of deprivation, as they often see a greater spiral of poverty and economic dependence in situations of family breakdown and family overload.
Higher incomes are often associated with younger individuals, driven by factors like career progression, industry preferences, and educational qualifications (Liao et al. 2023). Younger individuals benefit from career flexibility, advancement opportunities, and skill accumulation, contributing to increased income levels. High-income sectors like technology and finance attract a younger demographic, valuing traits such as innovation and adaptability (Rouvroye et al. 2022). Recent graduates and those pursuing advanced degrees are more likely to command higher incomes due to specialized skills in demand (de Lange et al. 2023). Conversely, older individuals may experience income fluctuations due to factors like career plateaus or caregiving responsibilities. Some prioritize stability over pursuing higher earnings, contributing to observed income differences among age groups (Alcover et al. 2023). Age is thus seen as a vulnerability factor in the condition of poverty. There is an assumption that tends to see the ageing process itself as a determining factor of poverty (e.g., Kwan and Walsh 2018). In reality, poverty in old age is a condition that stems from life trajectories of accumulated disadvantages (low economic and social status prior to retirement, low public social benefits, gender differences in opportunities).
Individuals with lower incomes are prone to separation, divorce, or widowhood, whereas those with higher incomes are frequently found in marital, cohabiting, or single situations. Financial hardships can strain relationships, resulting in separations or divorces among those with lower incomes (Landau and Arthur 1992). Various socio-economic stressors faced by low-income individuals impact family dynamics. In contrast, individuals with higher incomes, benefiting from financial stability, often experience enduring relationships (Schoeni 1995). Economic well-being fosters supportive family environments, making marriage or cohabitation more feasible. Access to resources and opportunities enhances overall relationship satisfaction and stability.
Full-time employment, self-employment, retirement, homemaking, and unemployment are more prevalent among those with low incomes compared to medium and high-income individuals. Low-income individuals often engage in full-time employment and self-employment, driven by hourly wages and opportunities in less lucrative industries (Eardley and Corden 1996). Retirement and homemaking are more prevalent among this group, with early retirement and homemaking as responses to limited career advancement or financial constraints (Brydsten et al. 2023). Unemployment is higher among low-income individuals due to challenges in accessing stable job opportunities, influenced by economic factors, educational disparities, and industry-specific challenges (Lee et al. 2023).
In view of the social changes that have taken place over the years, more urban areas are now facing new social challenges as they are confronted with increasingly high levels of unemployment and an increase in poverty. As a result, citizens are seeing their living conditions worsen, with greater difficulties in accessing health care, social support and education (Adamovsky 2013). Moreover, individuals with high incomes are more likely to reside in urban areas than those with medium or low incomes (Talen and Koschinsky 2013). Individuals with high incomes often gravitate toward urban areas, drawn by various factors such as job opportunities, cultural amenities, and a higher standard of living (Steinmetz-Wood et al. 2017). Urban settings typically offer a concentration of high-paying jobs, diverse entertainment options, and access to quality services, making them attractive to those with the financial means to afford such amenities (Bratu et al. 2023). Conversely, individuals with medium or low incomes may face economic constraints that influence their residential choices (Atkins and Hart 2019). Cost of living, housing affordability, and job availability are crucial considerations for those with limited financial resources. As a result, they may opt for suburban or rural areas where living expenses may be comparatively lower (Heilmann et al. 2021).
Across educational levels, from short-cycle tertiary education to doctoral education, individuals with higher incomes can be found. Notably, only those who identify as belonging to the upper middle class and upper class have higher incomes than others. Higher education correlates with higher incomes, reflecting the value of specialized knowledge and skills (Li et al. 2019). Advanced degrees, like doctoral education, often lead to positions with competitive salaries (Brea-Martinez et al. 2023). Those identifying as upper middle class and upper class tend to have higher incomes, revealing the influence of social class distinctions. Higher social classes provide advantages in career opportunities, networking, and financial privileges. This highlights education's role in economic outcomes, suggesting it contributes to upward mobility (Dorn et al. 2023). However, income-social class ties indicate systemic issues in social stratification, emphasizing the need for comprehensive efforts to address disparities and enhance societal inclusivity.
Over the past 12 months, individuals with low incomes have more frequently experienced challenges such as insufficient food, lack of necessary medicine or treatment, absence of cash income, absence of secure shelter, and feelings of insecurity from crime within their homes, compared to individuals with medium and high incomes (Leichenko and Silva 2014). Economic constraints leave individuals with low incomes grappling with insufficient food and lack of necessary medicine, impacting nutrition and healthcare access (French et al. 2019). Notably, low incomes result in the absence of cash income, signaling financial instability and difficulty meeting basic needs (McGann and Murphy 2023). Housing insecurity is prevalent among low-income individuals, affecting well-being, health, and stability (Kang 2023). Feelings of insecurity from crime are more frequent for those with low incomes, often linked to residing in areas with higher crime rates (Stiglitz 2015). These challenges collectively diminish the quality of life for individuals with low incomes, emphasizing the need for urgent societal efforts to address economic disparities, enhance social safety nets, and create opportunities for upward mobility (Kushel et al. 2006).
Furthermore, participants with lower incomes more frequently compare their standard of living to that of their parents as being worse than individuals with medium and high incomes (Bruno et al. 2023). Those with lower incomes often encounter obstacles in progressing economically, leading to a perception that their standard of living is declining compared to that of their parents. Citizens are pessimistic about the economic prospects of future generations because compared to the older generations, the baby boomers, who had access to stable jobs, the younger generations, the millenialls, will find it more difficult to achieve the economic conditions of their parents (OECD 2019).
Economic limitations, restricted opportunities, and systemic hurdles contribute to this perception of stagnation or setback (Smeeding 2016). In contrast, individuals with high incomes tend to experience more stability or improvement in their standard of living compared to their parents (Sirgy 1998). Access to superior educational and career prospects, financial resources, and intergenerational support fosters a more positive evaluation of their economic circumstances. The assessment of one's standard of living in comparison to parents is shaped by a multifaceted interplay of economic, social, and cultural elements (Kagitibasi 2014). Factors such as educational achievements, job prospects, and societal shifts all play a role in influencing individual perceptions of progress or decline in living standards.
In terms of the local community, on a global scale, individuals with lower incomes express a higher incidence of problems and concerns compared to those with medium and high incomes (McGann and Murphy 2023). These issues include matters related to security, robberies, street violence, police intrusion into private life, public alcohol consumption, the presence of chronic alcoholics, street-level drug use, as well as challenges associated with people of diverse races, homosexuals, and unmarried couples cohabiting (Heilmann et al. 2021). Individuals with lower incomes face heightened security issues, including increased incidents of robberies and street violence. Economic vulnerabilities contribute to elevated exposure to crime in their local communities (Stiglitz 2015). Concerns about police intrusion and issues with public alcohol consumption highlight the intricate relationship between law enforcement, public behavior, and socioeconomic factors in lower-income communities (Porthé et al. 2021). Also, in lower-income areas, the prevalence of chronic alcoholics and street-level drug use is higher, accentuated by economic challenges. This underscores the complex link between social and economic issues contributing to substance abuse (Xu et al. 2022).
Lower-income individuals encounter challenges in diverse communities, facing issues with people of different races, homosexuals, and unmarried couples cohabiting. These challenges reflect broader societal concerns about inclusivity and acceptance. Disparities in local community experiences emphasize how socioeconomic factors intersect with safety, law enforcement, substance abuse, and social cohesion within neighborhoods (Stein 2013). Economic disadvantages compound these challenges.
Individuals with medium incomes report higher challenges, particularly in relation to racist behavior, suggesting heightened awareness or impact of racial discrimination (Jamieson et al. 2021). However, they express fewer concerns in interactions with people from different religions, indicating a divergence in perceived challenges. Contrastingly, those with high incomes show a higher prevalence of concerns, specifically regarding sexual harassment and immigration (Alesina et al. 2023; Smidt et al. 2023). This may indicate increased awareness or sensitivity within this income group, possibly influenced by a diverse social environment or exposure to global issues. These findings emphasize how socioeconomic factors, like income levels, shape perceptions of societal challenges. Varied concerns across income groups highlight the intricate interplay between economic status, cultural dynamics, and awareness of social issues (Haddon and Wu 2022).
The factors contributing to higher income encompass a diverse range of demographic, social, and personal attributes, illustrating the multidimensional nature of income disparities (Dabla-Norris et al. 2015). Being male and younger suggests potential advantages in career progression, adaptability, and access to opportunities, contributing to higher incomes (Rouvroye et al. 2022; Speer et al. 2013). Individuals in marital or marital-like arrangements may benefit from shared resources, stability, and mutual support, positively influencing their income (Schoeni 1995). Active employment and belonging to a higher social class often correlate with access to better-paying positions and increased earning potential (Eardley and Corden 1996). Residing in urban areas and possessing a higher level of education can provide access to diverse opportunities, professional networks, and industries that contribute to higher income (Brea-Martinez et al. 2023; Talen and Koschinsky 2013).
Avoiding situations like insufficient access to food, inadequate funds, and surpassing the living standards of one's parents serves as an additional explanation for achieving a high income. Evading scenarios of insufficient access to food and inadequate funds implies financial stability. This stability allows individuals to meet basic needs, contributing to a higher income (McGann and Murphy 2023). The ability to afford necessary medical treatments reflects good health and well-being. A healthy workforce is often more productive, potentially leading to higher income levels (Salgnac et al. 2020). Avoiding substandard housing indicates a level of comfort and may be associated with higher living standards (Kang 2023). A comfortable living environment can positively impact one's overall satisfaction and productivity, potentially contributing to a higher income. Achieving a living standard higher than that of one's parents signifies upward mobility (Bruno et al. 2023). This progress may result from access to better educational and career opportunities, contributing to a trajectory of increased income.
Moreover, having neighbors who communicate in a different language or hail from diverse racial backgrounds adds to the factors that explain a higher income. Conversely, having neighbors who are afflicted with AIDS or engage in heavy drinking contributes to the explanation of a lower income. Interaction with neighbors of different languages and racial backgrounds can expose individuals to diverse perspectives and opportunities, potentially enhancing professional networks and contributing to higher income (Dooly and Vallejo Rubinstein 2018). The presence of neighbors with AIDS or engaged in heavy drinking may indicate health challenges within the community. This can lead to increased economic burdens, including healthcare costs and potential disruptions in employment, contributing to lower income levels (Latkin et al. 2013). These neighborhood dynamics underscore the interconnectedness of community influences on individual economic outcomes.
Individuals with higher incomes seem to be more inclined to notice issues related to substance use when experiencing happiness. While higher income doesn't directly cause this awareness, there appears to be a correlation between elevated income levels, positive emotions, and an increased awareness of substance use issues. Several potential explanations support this trend: Those with higher incomes often have better access to educational resources and information about substance use risks, increasing their awareness of signs and symptoms (Russolillo et al. 2023). Higher-income individuals may be part of social circles that are more attuned to mental health and substance use issues, enhancing their likelihood of noticing such issues, especially when feeling happier and more engaged (Macchia and Whillans 2021). Individuals with higher incomes typically have better access to mental health resources, fostering introspection and observation of behavior changes related to substance use (Thomson et al. 2022). Cultural attitudes toward substance use and mental health vary across socioeconomic groups. Cultures with higher socioeconomic status may prioritize self-awareness and self-improvement, contributing to heightened awareness during periods of happiness (Miyamoto et al. 2018).
Limitations and future research
Despite offering valuable insights into the factors influencing income disparities, the study has certain limitations that warrant acknowledgment. The study makes sweeping statements about gender income disparities, age-related income trends, and the impact of various factors on income levels. However, individual experiences can greatly differ, and the study may not capture the diverse range within various demographic groups. While the study uncovers associations between factors like education, marital status, and urban residence with income levels, it falls short of establishing causation. Unexplored variables may contribute to the observed income patterns. The study may not fully grasp the nuanced and subjective nature of these experiences, with individual perceptions influenced by a variety of personal and cultural factors. The study might not fully capture the experiences of marginalized groups or account for intersectional identities. It is crucial to consider the diverse backgrounds of individuals for a more inclusive comprehension of income dynamics. The study centers on individuals' perceptions of their standard of living. While perceptions are vital, they may not always align with objective economic or health indicators, introducing potential bias.
Future research in this field could explore several avenues to deepen our understanding of income dynamics and related factors. Conducting longitudinal studies to track changes in income disparities over time would provide insights into the dynamic nature of these trends. Examining how various factors interact and evolve could contribute to a more comprehensive understanding. Complementing quantitative data with qualitative research methods can offer a richer understanding of the experiences, perspectives, and motivations of individuals regarding income. In-depth interviews and case studies could unveil nuanced narratives behind income patterns.
Comparing income dynamics across different countries and cultures can highlight variations influenced by diverse economic systems, social structures, and cultural norms. This could contribute to a more comprehensive understanding of the global landscape. By addressing these areas, future research endeavors can contribute to a more nuanced and comprehensive understanding of income dynamics, providing a foundation for informed policy decisions and social interventions.