What is inequality?

Inequality has many definitions and can affect different people in different ways. People can experience different treatment based on aspects of their identity, such as gender, ethnicity, or sexual orientation.

But there are also many other definitions of inequality, such as money, power, opportunities and class.

Economic inequality is a major cause of poverty worldwide. We are all affected by inequality – as long as some people, usually wealthy people living in or connected to the Global North, have much more than they need, others are left without enough.

The opposite of inequality is equality. Equality means everyone has the same rights, opportunities and status.

Inequality isn’t only measured by income or mathematical indexes. It can also be assessed through poverty rates and key social measures that show the real impact of unequal conditions.

Poverty levels are a good indication that inequality is present. High poverty rates usually indicate deeper inequalities in how resources are distributed.

Key measures include:

• Education access (enrolment, literacy, attainment gaps)
• Health outcomes (life expectancy, infant mortality, healthcare access)
• Employment and job security (unemployment, pay gaps, insecure work)
• Housing conditions (overcrowding, homelessness, affordability)
• Social mobility (how easily people can move up economically)

These levels show whether people have equal opportunities. Large gaps between groups, such as by region, gender, ethnicity, or class, also signal higher inequality.

A key factor that keeps inequality going is how power and money are closely connected. In many societies, wealth can buy influence over political decisions, economic opportunities, and social systems.

Those with fewer resources have less access to education, housing, healthcare, and secure work, limiting their opportunities. Over time, this creates a cycle where money generates power, and power protects wealth, reinforcing economic and social inequality.

In short, inequality is measured not just by what people earn, but by the opportunities and quality of life available without having to buy it.

Inequality can show up in many different ways, but some of the key types of inequality include:

Gender inequality

Gender has a big impact on how we experience the world, the opportunities we have access to and the recognition that they get.

People of all genders experience challenges, but those identifying as women and non-binary people are much more likely to experience things like sexual harassment, poor healthcare and lower rates of pay.

For example, Oxfam found that in 2023, it would have taken 1,200 years for a woman working in the health and social sector to earn what the average top boss of one of the biggest 100 US companies earns in a year.

Income inequality

This describes the imbalances between how much money people get for their work and through other ways, such as investments.

This is an issue all over the world. Some people make huge amounts of money, and some people make very little – even for the same type of work. The fact that they get paid such differing amounts means that for those who are paid less, it’s likely to be harder to thrive.

Some people assume that those who are paid a lot are especially talented or unusually hard workers, but the Oxfam report 'Takers not Makers' has shown this isn’t always the case. Some people who have high incomes get these through their families or connections.

Social inequality

In a more equal world, we would all have the same rights and status in our societies. This could include being able to connect and live with the people we love, having control over the work we do, being able to get the healthcare we need and being able to change our lives if we wish.

If the world was more socially equal, a few powerful people wouldn’t control decision-making as they do now and we would all be able to drive changes in our communities.

For example, the ‘G7’, which is a group of the seven richest countries, has 41% of the votes in major financial decision-making at the IMF and World Bank, two of the big monetary organisations. But these seven countries have less than 10% of the world’s population between them.

Inequalities are caused by many things, and these often connect and overlap.

Above, we talked about gender, income and social inequality, and other prejudices that make society unequal. But what historical or other causes of inequality are there?

World systems, past and present

History includes many times when people were mistreated and exploited, and the systems that were used to do this continue today.

For example, powerful countries colonised other parts of the world and took wealth, resources, and even people to make themselves richer. This continues today. Rich countries employ people in Global South countries for jobs because they can pay those living there lower wages.

Other systems that cause inequality include the ways that we move money around the world and the ways that world leaders make big decisions. These harm people in lower-income countries because they often concentrate money and power in Global North centres of influence.

One of the ways that Oxfam wants to tackle these unequal systems is by ‘decolonising’. Decolonising means undoing these systems and challenging the ways of thinking that carry on an exploitative mindset.

Climate inequality

There is a huge imbalance between those who cause climate change and those who experience its most disastrous effects.

We know that carbon emissions worsen climate change. The people whose lives emit the most carbon mostly live in the Global North. A small number of very rich people also have lifestyles that create especially large amounts of carbon, through using things like private planes and fancy yachts.

The impacts of climate change, such as floods or droughts, don't affect everyone equally. Countries in the Global South have been hardest hit by these impacts, even though the people living there have much smaller carbon emissions than others.

Plans to address this imbalance and share money and resources with people affected by climate change are called climate justice.

Discrimination and prejudice

In all our societies, even the ones we feel are more equal, some people can be pushed to the edges. This might be because of assumptions that people make about them or past abuse which continues now.

For example, people living with disabilities can have more difficult experiences in the world. This is because our societies haven’t adapted to give them the same rights and access (such as being able to travel around freely and do the jobs they choose).

Every country in the world is affected by inequality. Depending on the type and cause of the inequality, different countries can be affected in different ways, and different calculations can also give different results.

Oxfam is working with partners to make more countries more equal. Here are some examples of countries experiencing high inequality, and how we want to improve that.

South Africa

South Africa is affected by high income inequality. This means that there is a big difference between the incomes of wealthy people and those who have very little.

South Africa has some very rich people, some of whom benefited from the apartheid system that divided black and white people and which officially ended in 1994. But countries that had historic divisions and discriminatory systems are often affected by these for many, many years after they officially change.

South Africa has a lot of people who are living with poverty. Many of these people are Black and are still experiencing discrimination and fewer opportunities today.

Oxfam South Africa is working with partners to make changes, campaigning for fairer financial systems so that wealthy people pay their fair share. The money from these taxes could then be used to make society more equal.

Colombia

Columbia has been affected by fighting and violence from internal groups for many years, and this has left more people experiencing poverty. People escaping conflict in nearby countries have also travelled to Colombia seeking safety. Conflict causes poverty in many ways, for example by depriving some people of access to good work and disrupting food supplies, so food can become costly.

In this way, Colombia is an example of how conflict contributes to inequality. It also has big gaps between the experiences and opportunities of men and women, and so has significant gender inequality.

Oxfam Colombia has partnered with organisations who are experts in the challenges that Colombians are experiencing, such as Ambulua who work with women and girls to call for more safety. We also raise up the voices of others who are calling for peace.

Zambia

Zambia is an example of a country that now has high inequality – but that hasn’t always been the case. This has changed a lot over time. For example, in the 2000s, there was high demand for copper, and people were able to mine and sell a lot of it.

This made Zambians generally more well-off, but the wealth wasn’t shared equally. Many people still lived in poverty while a small number benefitted most.

But as the prices that other countries would pay for these minerals fell, the country’s economy suffered and the people who had less were made even more vulnerable.

The country has also seen the impacts of climate change (climate inequality in action). A lot of Zambians still rely on their own small farms to make their living.

Extreme weather, such as very hot summers then dramatic floods, make farming harder and less profitable, leaving farmers people worse off and so more removed from the minority who still hold power and wealth.

Oxfam is part of a worldwide movement determined to make it so that no one has to experience poverty. As poverty is linked to inequality, Oxfam works to tackle inequality worldwide. Here are some ways Oxfam does this.

Campaigning to persuade decision-makers to make the world more equal

Oxfam tackles inequality by using its voice and visibility as a big and well-known charity to put pressure on people in powerful positions.

Oxfam wants to see the systems that cause inequality changed and updated. This needs people who have influence, such as politicians and big companies, to change how businesses and countries are run.

Oxfam campaigns to promote alternative ways of doing things, such as different financial and taxation systems, and to make those in power consider changes for people and planet – not simply profit.

This happens in lots of ways, such as protests, petitions, lobbying, researching and publishing our findings, running events, grabbing media attention, writing letters to decision-makers, all drawing attention to issues and much more.

Limiting the effects of inequality in emergencies

In crisis and humanitarian situations, the gaps between the people made vulnerable by unequal societies and those who have more assets, wealth and power can become much wider.

For example, we know that in wars and conflicts, women and non-binary people are more likely to experience sexual violence as part of the fighting.

Oxfam works with partners, often experts in their subjects and regions, to try and quickly limit some of the impact of emergencies so that everyone has equal access to the essentials.

Some crises leave people without enough access to clean water, for example – but those who have more money will be able to buy bottled water even if the limited supplies make it very expensive. In a situation like this, Oxfam’s partners would work to provide enough water for everyone, so that those who have less can also stay healthy and well.

You can help Oxfam and our partners act in crises by giving even a small amount to our emergencies fund, which helps us to be ready to act whatever and wherever the emergency is.

Tackling day-to-day inequality – and our own role

Oxfam works with partners and experts across the world to support their work in projects that seek to change power imbalances.

For example, with funding from the Australian government, Oxfam Australia has partnered with organisations in Papua New Guinea such as Family for Change. They run training, counselling and learning sessions to tackle abuses of women and so address their unequal treatment in society.

Oxfam is also working to address and take responsibility for our own role in causing inequality. Oxfam has, in the past, contributed to imbalances by creating a sense of ‘us’ and ‘them’ and holding onto power instead of sharing it. Oxfam is working to change this and be part of a world that is more equal.