The first reason has to do with education. Some people have higher incomes than others do because they obtained a higher level of education. Thus they are put in better positions to get higher paying jobs that require higher levels of skills. The second reason for income inequality has to do with the fact that some people hold more wealth than others and that the distribution of wealth is more uneven than that of income. This inequality gives the wealthy the advantage to send their children to expensive colleges and universities, and to set their children up in business so they can earn a better income.
Discrimination is another reason that there is an inequality with regards to income.
Certain unions may deny immigrants or minorities membership o the grounds that certain groups are not fit for certain professions. Another factor that influences the distribution of income is the ability that some people possess. Professional athletes and popular performers all have natural abilities that allow them to earn more income. Finally, another reason for differences in the distribution of income is the amount of monopoly power certain groups hold. Unions have considerable power and have been able to obtain higher wages for their members.