Income Inequality Challenges Economic Stability and Social Cohesion

Abstract

Income inequality has been identified as a significant threat to economic stability and social cohesion in various countries. Increasing income inequality can trigger instability, both in economic and social aspects, including conflict, societal disintegration, and declining economic growth in the long term. Therefore, this article aims to analyze the impact of income inequality on economic stability and social cohesion in various countries with a comprehensive approach. This study uses a systematic literature review (SLR) method by reviewing various empirical studies from international databases such as the World Bank, IMF, and leading scientific journals. Through SLR, this article identifies patterns and key findings related to the relationship between income inequality, economic growth, and various social indicators in a global context. The systematic review results indicate a significant relationship between income inequality increased risk of economic instability and decreased social cohesion, especially in developing countries. Based on these findings, this article suggests implementing income redistribution policies and increasing access to public services as steps to reduce the negative impacts of income inequality and strengthen socio-economic stability at the national and global levels.