- Equality describes situations where economic outcomes are similar for different people or different social groups
- Income equality would mean everyone, irrespective of their job, is paid the same
- Inequality in the distribution of income is one cause of absolute and relative poverty
- Equity refers to the idea of fairness and is a normative concept
- Equity in the distribution of income means that there is fairness in the wage differentials that exist in society, e.g. those with higher qualifications or skills are paid more than those with less
- The size of acceptable wage differentials is a matter of much debate
Diagram: The Distinction Between Equality and Equity
Equity is a normative concept and carries the idea that those who need more help, get it (two boxes). Those who need less help, receive less (one box). Those who need no help, can stand alone
(Interaction Institute for Social Change | Artist: Angus Maguire)